Iraq signs $27 bln energy projects deal with Total
The company will start with an initial investment of $10 billion, CEO Patrick Pouyanne said at the signing ceremony, adding that engineering work will begin immediately.
Iraqi oil minister Ihsan Abdul Jabbar said the first phase would include the French group's $3 billion investment to inject seawater into oilfields to enhance crude recovery.
Total, he added, will also provide $2 billion to build a processing plant for gas produced at the southern fields of West Qurna 2, Majnoon, Artawi, Tuba, and Luhais.
Jabbar said it is expected to produce 300 million cubic feet of gas per day (mcf/d) and double that after the second phase of development.
The oil minister said that the gas produced from Total's project in the south would help Iraq cut its gas imports from Iran, with the domestically produced gas is also cheaper than the Iranian gas.
"The cost of the gas imported from Iran is around $8 per million Btu, and the gas produced from Total's project would be $1.50 per million Btu cheaper," Jabbar said.
The other two projects are a solar power plant to increase crude output from the Artawi oilfield.
Total will help boost output from the Artawi oilfield to 210,000 barrels per day of oil (bpd) from 85,000 bpd now, an oil ministry statement said.
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