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France’s Total Energy has signed a $ 27 billion deal on oil, gas and solar energy in Iraq amid a major power crisis.
Announcing the deal to reduce Iraq’s dependence on fossil fuels was announced by Oil Minister Ihsan Ismail at a ceremony in Baghdad with Total Energy chief Patrick u.
Total Energy has confirmed the price or duration of the contract directly to AFP after months of negotiations and several visits.
However, he said France’s main infrastructure had initially spent $ 10 billion on infrastructure, after which $ 17 billion would be used for second-round investments.
“This is the largest investment in a Western company in Iraq,” Ismail said. Implementing these projects is a challenge we now face.
In January, Powanne tweeted: “I am happy to be in Basara, where I have visited the gas and oil fields. “Reducing and increasing gas production is a priority for Iraq and Total. Let’s work together!”
Iraq has vast oil and gas reserves.
Despite being the number two producer in the Organization of Petroleum Exporting Countries, it is facing a chronic crisis that could lead to a major energy crisis and social unrest.
Officials cited falling oil prices, which account for more than 90 percent of government revenue, as reasons for the lack of investment and the collapse of the energy network.
– ‘Reduce imports’ –
The country is dependent on neighboring Iran for a third of its gas and electricity supplies.
However, Baghdad currently owes Tehran $ 6 billion.
A statement from the Iraqi Ministry of Petroleum said before the signing ceremony that the agreement signed with Total Energy on Sunday would cover four projects.
One of these is transporting the Gulf from the Gulf to gas stations in southern Iraq. Water is used to extract oil from underground deposits.
Another is to increase production from 85,000 barrels per day to 210,000 BPD from the Arta oil field near the southern port of Basra.
The third project involves a complex construction project to exploit the gas sector.
Instead of burning or burning the surplus, the plan is to use it for power generation.
“This will reduce imports,” the prime minister’s office said.
The fourth project involves the installation of a solar farm.
According to an Iraqi source, solar panels will eventually generate “1,000 megawatts” of nuclear power.
“Iraq pays nothing,” the source added.
According to the Iraqi government, solar power is “45 percent less than that produced by traditional power stations.”
In January, Ishmael said his relationship with the French company was “growing rapidly.”
Former France, one of the world’s five largest energy companies, has renamed Total Energy as the world’s largest energy source.
Although it still focuses on oil and gas, the company said it would invest 20 percent of its growth in electricity and renewable energy this year.
It has been found in Iraq since the 1920s.
21 2021 AFP