Country Risk

Total's Big Deal, Baghdad's Big Wake-Up

Copyright © 2021 Energy Intelligence Group
  • TotalEnergies’ recent $10 billion energy deal with Baghdad could prove transformational.
  • Sunday’s deal hits multiple sweet spots, taking on vital oil infrastructure, gas capture and electricity generation, renewables adoption and the low-carbon development of a key oil field. 
  • Covid-19 was a wake-up call, Baghdad said, although risks remain, including elections next month. 

Not since the upstream mega-auction of 2009-10 has Iraq seen awards to rival Total's deal. A 1 gigawatt solar project, Iraq’s first major renewables project, will power a 125,000 barrel per day expansion of the Ratawi oil field and a 600,000 million cubic feet gas plant. But perhaps most important in industry terms is a 5 million b/d seawater injection project, on the drawing board for years, to maintain reservoir pressure at Iraq’s key Basrah province fields.

A megadeal struck with TotalEnergies could free Iraq from years of oil sector drift, according to Energy Intelligence analysis.
Thu, Sep 16, 2021
Most Read
Production of hydrocarbon liquids outside the Opec-plus alliance will peak in 2025, our medium-term outlook shows, the inevitable result of lower investments upstream.
Thu, Sep 16, 2021