(Bloomberg) – The government of Iraq and Total Energy is close to concluding a multibillion-dollar investment deal to boost oil and gas production and reduce power outages in the Middle East, according to people familiar with the matter. .
According to the agreement, a French power company will invest in a large-scale oil field in the southern state of Basra, and will bring in seawater in the region to sustain its production. People who asked for anonymity because the information has not yet been made public.
Total Energy will help Iraq capture the natural gas associated with many of the region’s oil fields. People say that fuel, now burnt in the air, can be used to feed power plants. He also said that the company will build a huge solar power plant.
With businesses and households facing frequent power outages, the projects could be a good opportunity for the Iraqi government, which is due to hold elections next month. In an oil-rich country, infrastructure investment has been marred by years of conflict, terrorism, and insecurity.
Baghdad, which wants to reduce its dependence on Iranian gas, has signed an agreement with Total Energy to increase the country’s hydrocarbon production and build a 1,000-megawatt solar power plant. The country relies heavily on natural gas to produce fossil fuels.
Following agreements in Libya, Qatar and Abu Dhabi, the French company, which will expand into the Middle East and North Africa, will expand its reach to OPEC’s second-largest producer.
Total Energy’s low-cost resources are not without risks. The natural gas plant in war-torn Yemen has been idle since 2015, and construction of an LNG facility in Mozambique has stalled for at least a year as the government seeks to control terrorism in the region.
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