French giants Total have signed a $ 27 billion oil and gas deal with Iraq as other major oil companies look to leave Iraq.
France has signed a $ 270 billion mega-deal with Iraq to develop a giant oil field, natural gas and critical water project.
The agreement was signed on Sunday in the presence of Prime Minister Mustafa al-Kadimi.
Total contracts signed with the Ministry for the development of the Raw oil field in southern Iraq, a natural gas processing plant from five southern oil fields, and an important project to treat Gulf seawater and maintain oil production. .
A fourth project has been signed with the Ministry of Electricity to build a 1,000 megawatt solar power plant.
The oil deal in Iraq is a lucrative and lucrative deal that comes as other international oil companies take steps to withdraw from Iraq’s oil sector.
No statement from Total.
Iraq needs to develop its natural gas resources to meet its electricity needs, especially during the summer months. Due to high prices and high demand in Iran, the country relies heavily on imports of Iranian gas and electricity.
In an interview in June, Oil Minister Ihsan Abdul Jabar Ismail said Iraq plans to increase its gas capacity by three billion cubic meters (85 million cubic meters) by 2025. The development of the gas processing plant will bring Iraq closer to one level. That goal. Iraq currently produces two billion cubic feet (56.6 million cubic meters) of domestic footwear.
The project will include the construction of a gas complex to separate and manage natural gas from the oil fields of Ratawi, West Korana 2, Maconon, Tuba and Luhais oil fields. Iraq currently does not have the capacity to hold the gas, so it is burned in the atmosphere. Experts have complained that Iraq is wasting millions of dollars on natural gas handling. Once made, the gas can be supplied to power plants to meet domestic electricity needs.
Iraq says it plans to cut off gas exploration in the next two to three years. The World Bank estimates that Iraq burns 16 billion cubic meters (565 billion cubic meters) of gas a day.
But industry officials and technocrats at the Ministry of Oil say the agreement is part of a comprehensive maritime development deal for Iraq’s oil industry.
Oil is Iraq’s main industry and accounts for 90 percent of government revenue. Water enters the field to maintain the current production and to maintain the pressure of the well to achieve future goals.
Officials say the deal was seized by Ministry of Technologists who suspected it would be too difficult to implement the marine substance, but was signed by Prime Minister Mustafa al-Kadimi ahead of next month’s national elections.
“The Ministry of Oil and [state-owned] Basra Oil Company Total is skeptical about the seawater project. They think they will push the oil field and gas center projects and delay the rest, ”said an industry official familiar with the contract negotiations. An official with the BOC expressed similar concerns. They spoke on condition of anonymity because they were not authorized to speak to the media.
Industry and ministry officials have warned that there is no guarantee of adequate water supply in times of shortage and that there is no alternative.
The deal with Total reflects another multi-project agreement that has been negotiated for years with US oil giant Excon Mobile. But after years of intense negotiations, the agreement was terminated.
The Total deal comes as other oil companies plan to leave Iraq. Excon has announced that it will sell its share of West Koran 1 oil field this year. He also said that British Petroleum would drive the country’s largest oil field, Ramala.