Total agrees to invest in giant energy projects in Iraq

Total has signed an initial multi-billion dollar agreement with Iraq's oil ministry to invest in four giant energy projects in the country's south.

They include the common seawater supply project (CSSP), which Iraq has been trying to progress for over 10 years. The aim is to desalinate seawater for injection into oil fields, which will be vital to maintaining and ultimately expanding production at mature fields in southern Iraq.

The oil ministry did not disclose details on either the cost or scale of the CSSP, which has gradually become smaller over the last decade. South Korea's Hyundai Engineering and Construction was the latest firm to be awarded a contract for it in 2019. That deal, valued at $2.45bn, was to supply 5mn b/d of water for injection into oil fields during the first stage, which would take four years to complete with scope for further expansion. Former oil minister Thamir Ghadhban told Argus last year that the oil ministry was at an advanced stage with the Hyundai agreement, but that it had yet to move forward.

The agreement with Total also includes boosting crude capacity at the Ratawi field in Basrah to 200,000 b/d from 60,000 b/d currently and investing in processing facilities to capture associated gas from Ratawi, as well as the West Qurna 2, Majnoon, Luhais and Tuba oil fields. The gas processing facilities will have a capacity of 600mn ft³/d split equally over two phases. The final part of the deal is investment in solar power plants with a capacity of 1,000MW. The agreement will be submitted to Iraq's cabinet for approval.

By Rowena Edwards