TotalEnergies and the Iraqi government have defined the necessary conditions and mutual insurances to move forward with the Gas Growth Integrated Project (GGIP), a multi-billion-dollar project aimed at monetizing and developing the natural gas resources of Iraq and improving the country’s electricity supply.
The agreement was reached through exchanges in recent months while confirming terms of a development and production contract signed in 2021, TotalEnergies said in a release Apr. 5.
The Iraqi government and TotalEnergies have agreed on a 30% stake for the Basrah Oil Co. (BOC) in the GGIP and TotalEnergies has invited QatarEnergy to take a 25% stake in the GGIP.
The GGIP consortium will be composed of TotalEnergies (45%), BOC (30%), and QatarEnergy (25%).
Signed in September 2021, the GGIP was designed “to enhance the development of Iraq’s natural resources to improve the country’s electricity supply,” TotalEnergies said.
TotalEnergies and partners will invest about $10 billion to recover flared gas on three oil fields to supply gas to power generation plants; and to build a seawater treatment plant to provide water injection for pressure maintenance to increase regional oil production, as an alternative to the use of fresh water from rivers and aquifers.
In addition, TotalEnergies will develop a 1 Gw solar power plant to supply electricity to the Basrah regional grid. In agreement with Iraqi authorities, TotalEnergies will invite the Saudi company ACWA Power to join the solar project.
