The Iraqi government and "Total" are close to finalizing an agreement to invest billions of dollars in boosting oil and gas production and reducing power outages in the Middle Eastern country, according to sources familiar with the matter. Under the agreement, which could be announced next Sunday, the French energy company will invest in the large "Ratawi" oil field in the southern Basra Governorate and will bring its expertise in injecting seawater into oil wells in the region to maintain production, according to anonymous sources.
"Total" will also assist Iraq in obtaining natural gas associated with many oil fields in the area, with the possibility of using the gas, currently being flared into the air, to feed power stations. Additionally, the company will build a very large solar power plant, according to the sources.
These projects may support the Iraqi government, which will face elections next month, as companies and families struggle with frequent power outages. Investment in the oil-rich country's infrastructure has stalled due to years of conflict, terrorism, and a lack of security.
In July, Baghdad, seeking to reduce its dependence on Iranian gas imports, approved a preliminary agreement with "Total" to enhance its hydrocarbon production and build a solar power plant with a capacity of 1,000 megawatts. The country primarily relies on natural gas to supply electricity stations.
These deals enhance the French company's modest presence in the territory of the second-largest oil producer in OPEC, allowing it to continue expanding in the Middle East and North Africa following previous agreements in Libya, Qatar, and Abu Dhabi.
However, "Total's" pursuit of low-cost resources is not without risks; its liquefied natural gas plant in war-torn Yemen has been disrupted since 2015, and the construction of its liquefied natural gas plant in Mozambique has been paused for at least a year due to government efforts to contain terrorist attacks in the region.
