French energy giant TotalEnergies and partner QatarEnergy inked a deal with the Iraqi government for the Gas Growth Integrated Project (GGIP) to invest nearly $10 billion in Iraq’s energy sector, the companies announced in separate statements on Wednesday.
Initially signed in September 2021, the deal has since been delayed due to long-term intergovernmental disputes in Iraq.
The GGIP entails approximately $10 billion in investments to design and build facilities for recovering significant volumes of otherwise flared gas in Iraq’s Basra region and supplying such recovered gas to power plants, as well as establishing a seawater treatment and distribution system to supply water for injection into oil reservoirs for pressure maintenance purposes.
The Iraqi Government and TotalEnergies have agreed on a 30% stake in the Basrah Oil Company (BOC) in the GGIP, TotalEnergies said, adding that QatarEnergy was also invited to take a 25% share in the project.
The consortium will be composed of TotalEnergies with a 45% stake, Basrah Oil Company with a 30% interest, and QatarEnergy with a 25% stake, the statements confirmed.
Furthermore, TotalEnergies said it would develop a 1 gigawatt solar power plant to supply electricity to the Basrah regional grid.
In agreement with Iraqi authorities, the Saudi company ACWA Power will also be invited to join the solar project.