Iraq’s Basra Oil Company recently announced that France’s TotalEnergies has activated its four investment contracts involving oil, gas, renewable energy and seawater desalination projects.
The Ministry of Oil and TotalEnergies will now enter into contractual commitments to implement the projects, Basra Oil Company’s Director General, Bassim Abdul Karim Al-Shamkhani, told the media.
It may be noted that the $27 billion deal was signed in 2021 between Iraqi government and the firm to build four oil, gas, and renewable energy projects with an initial investment of $10 billion in southern Iraq over 25 years, but due to conflict over the size of Baghdad’s stake in the deal,it could not be materialised.
However, the deal was finally closed in April when Iraq’s agreed to take 30% stake in the project and TotalEnergies took a 45 percent stake, and QatarEnergy holds the remaining 25 percent.
Amongst the proposed projects , there is also a plan to develop a 1 GW solar power plant to supply electricity to the Basra regional grid.
TotalEnergies had said in a press statement that in agreement with Iraqi authorities, it will invite ACWA Power to develop a 1-gigawatt solar power plant to supply electricity to the Basrah regional grid
Going forward, the country will also get another 250 MW solar power facility to be built by PowerChina firm in Najaf following an agreement with the firm.