# Iraq and Total sign $27 billion energy projects deal
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-06
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Total Signs $27 Billion Deal for Giant Energy Projects in Iraq
Meta Description: Total to build massive energy projects in Iraq, investing $10 billion initially. Plans include boosting crude recovery, gas production, and increasing oil
URL: https://financedigest.com/iraq-and-total-sign-27-billion-energy-projects-dealhtml

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By Ahmed Rasheed

BAGHDAD (Reuters) – France’s Total will build four giant energy projects in southern Iraq under a $27 billion deal signed in Baghdad on Sunday, the country’s oil minister said.

The company will start with an initial investment of $10 billion, CEO Patrick Pouyanne said at the signing ceremony, adding that engineering work will start “immediately”.

The [plan is to mobilise teams in Iraq by the end](https://www.financedigest.com/exclusive-germany-prepares-crisis-plan-for-abrupt-end-to-russian-gas-sources.html "Exclusive-Germany prepares crisis plan for abrupt end to Russian gas – sources") of 2021, he said.

Iraqi oil minister Ihsan Abdul Jabbar said the first phase will include a $3 billion [investment by the French group in a project](https://www.financedigest.com/sse-to-invest-122-million-in-scottish-pumped-hydro-project.html "SSE to invest 2 million in Scottish pumped hydro project") to inject sea water into oilfields to enhance crude recovery.

Total, he added, will also provide $2 billion to [build a processing](https://www.financedigest.com/li-cycle-to-build-french-battery-processing-facility.html "Li-Cycle to build French battery processing facility") plant for gas produced at the southern fields of West Qurna 2, Majnoon, Artawi, Tuba and Luhais.

It is expected to produce 300 million cubic feet of gas per day (mcf/d) and double that after a [second phase](https://www.financedigest.com/belaruss-high-tech-park-announces-second-phase-legal-framework-cryptocurrency-industry-bid-become-leading-crypto-nation.html "Belarus’s High Tech Park Announces Second Phase Of Legal Framework For Cryptocurrency Industry In Bid To Become Leading Crypto Nation") of development, Jabbar said.

The [oil](https://www.financedigest.com/oil-gas-downhole-cables-market-to-witness-widespread-expansion-during-2019-2027.html "Oil & Gas Downhole Cables Market to Witness Widespread Expansion During 2019-2027") minister said that the gas produced from Total’s project in the south will help Iraq to cut its gas imports from Iran, with the domestically produced gas also cheaper than the Iranian gas.

The cost of the gas imported from Iran is around $8 per million Btu and the gas that will be produced from Total’s [project](https://www.financedigest.com/britain-announces-205-million-pound-auction-for-renewable-power-projects.html "Britain announces 205 million pound auction for renewable power projects") would be $1.50 per million Btu cheaper, Jabbar said.

The other two projects are a solar [power plant](https://www.financedigest.com/edpr-brings-iberias-first-wind-solar-power-plant-on-stream.html "EDPR brings Iberia’s first wind-solar power plant on-stream") and one to increase crude output from the Artawi oilfield.

Total will help to boost [output from the Artawi oilfield to 210,000 barrels per day of oil](https://www.financedigest.com/oil-prices-take-a-breather-opec-sticks-to-output-plans.html "Oil prices take a breather, OPEC+ sticks to output plans") (bpd) from 85,000 bpd now, an oil ministry statement said.

(Reporting by Ahmed Rasheed; Writing by Maher Chmaytelli; Editing by David Goodman)


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