Wednesday, Jun 29, 2022
International Finance
Featured Oil & Gas

Iraq and Total consider oil and gas infrastructure deal of $7 bn

This discussion with Total SE will help build large infrastructure installations, produce gas and develop oil fields in Iraq

Iraq and French oil giant, Total SE, are considering an oil and gas infrastructure deal of $7 billion, according to the media. This discussion with Total is expected to help build large infrastructure installations, produce gas and develop the oil fields in Iraq.

Ishan Abdul Jabbar, Iraq’s Oil Minister addressed the media and said that he expected the contract finalisation before July. This agreement with Total will be focusing on finding the low-carbon industry and is set to produce 1GW of solar energy in the first stage. He also added that the deal is discussed by a specialised team from the oil ministry.

His statements further implied that this agreement is huge and has the possibility of investments exceeding $7 billion. The further conditions including political and administrative decisions for the economic model that protects the rights of both parties are already hammered out.
It is to note that in January, Iraq signed a Memorandum of Understanding (MoU) with Patrick Pouyanne, Chief Executive Officer of Total on capturing natural gas, clean energy and infrastructure. The first report of talks between Iraq and Total was in October last year.

The nation is expecting to sign a deal to build an oil export pipeline from the southern province of Basara to Jordan’s Aqaba port on the Red Sea. The minister assured that a framework agreement might be signed before mid-April. The gasoline and gas and oil imports will be lowered by 50 percent in 2021 and 90 percent in the next year to support power generation. Currently, Iran is the country’s gas supplier and Iraq is trying to diversify imports from Qatar, Kazakhastan and other producers.

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.