Iraq expects Total to start an energy project at a cost of $27 billion in the second half

Iraq expects Total to start an energy project at a cost of $27 billion in the second half
Iraq expects Total to start an energy project at a cost of $27 billion in the second half
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© Reuters. The logo of the energy company Total Energies in a photo from the Reuters archive.

BASRA, Iraq (Reuters) – Iraq expects Total (EPA: Energiz) to start operations on a long-delayed $27 billion oil, gas and renewable energy project in the second half of this year, Bassem Mohammed, Undersecretary of the Iraqi Ministry of Oil for Extractive Affairs, said on Friday. Final touches on side contracts with the state oil company.

Muhammad added that Total Energies and Basra Oil “are in the process of finalizing some contractual procedures and documents necessary to activate the contract.”

And he added, “Meetings are continuing with Total to avoid any delay, and the contract will be activated in the second half of this year to start operations.”

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The agreement was concluded in 2021, according to which Total Energies will implement four oil, gas and renewable energy projects with an initial investment of ten billion dollars in southern Iraq over a period of 25 years, but it was postponed amid disagreements between Iraqi politicians over the terms.

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Last month, Iraq announced approval of a smaller 30 percent stake in the project, which revived the agreement, which Baghdad hopes will attract foreign investment to return to a country that is witnessing relative stability after years of conflict and tensions.

Qatar Energy Company will also have a stake in the project.

(Covering by Aref Muhammad from Basra – Prepared by Rehab Alaa for the Arabic Bulletin – Edited by Mahmoud Abdel-Gawad)

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