An oil site in Iraq
05 Apr 2023 12:54 PM
Mubasher: Total Energies has revealed that it has reached an agreement with the Iraqi government; it includes setting a 30% stake for Basra Oil Company in 4 oil projects planned to be implemented in Iraq, including optimal investment projects for associated gas and the development of oil fields.
In a statement, Total said that based on the agreement with the Iraqi government, it called on Qatar Energy Company to acquire a 25% stake in the projects, and therefore a consortium will consist of Total Energy with a 45% stake, and Basra Oil Company with a 30% stake and Qatar Energy with a 25% stake.
Total added that the agreement with the Iraqi government included confirmation of all the terms of the development and production contract signed in 2021, noting that the two parties have through exchanges in the past months, including on 4 occasions between the Iraqi Prime Minister, Chairman of the Board of Directors and CEO Patrick Boyani, jointly determined what is necessary for mutual terms and insurances to proceed with the integrated associated gas project.
Total welcomed the Iraqi government’s understanding of the development and production contract for the project, noting that this is a strong and positive signal for foreign investment in the country.
The project contracts were signed in September 2021; with the main purpose of promoting the development of Iraq’s natural resources to improve the country’s electricity supply.
According to these agreements, Total Energies and its partners will invest about $10 billion, Total said.
She noted that the agreement includes developing a 1 gigawatt solar power plant to supply electricity to the Basra regional network, and in agreement with the Iraqi authorities, Total will invite Saudi ACWA Power to join this solar energy project.
On September 5, 2021, the signing ceremony took place on the umbrella of the agreement for optimal investment projects for associated gas and the development of oil fields, which includes three contracts between the Iraqi Ministry of Oil and the French company Total, and the fourth contract is the solar energy project between the Ministry of Electricity and the French company Total.
The Prime Minister’s Information Office revealed at the time that the total value of the four projects is $27 billion, while the total return on profits during the contract period reaches $95 billion, calculating the price of a barrel of $50.
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