TotalEnergies started the primary redevelopment of the Ratawi oil field. It aims to increase production to 120,000 barrels per day by next year.
Iraq has entered into a joint operations agreement with France’s TotalEnergies, QatarEnergy LNG, and the state-run Basra Oil Company to manage the Artawi oil field, as announced by Prime Minister Mohammed Shia al-Sudani.
This agreement was part of the Gas Growth Integrated Project, an initiative involving TotalEnergies, QatarEnergy, and the Basra Oil Company. The program aimed to increase Iraq’s energy supply by tapping into three oil fields and directing the gas to the power plants. Officials stated that the plan also included developing renewable energy and reducing Iraq’s energy import costs. The project will boost Iraq’s oil, gas, and power outputs, reduce its reliance on importing from its neighbor Iran, and attract foreign investors back to the country.
QatarEnergy stated that its Chief Executive and State Minister for Energy, Saad al-Kaabi, met with Sudani and TotalEnergies’ Chief Executive, Patrick Pouyanne, in Baghdad to start construction for the second phase of the Artawi project.
In the meeting, they were also talking about the Common Seawater Supply Project, which will manage and transport 5 million barrels of seawater every day to oil fields in southern Iraq.
TotalEnergies announced on Monday that it has started the second phase of development at Iraq’s Ratawi oilfield, marking the start of the seawater treatment plant, which is nearing completion as part of a $27 billion multi-energy project.
On Sunday, the Prime Minister of Iraq, the Minister of Energy of Qatar, and the CEO of TotalEnergies met to discuss the contracts for the joint Gas Growth Integrated project, with Total holding a 45% stake, Iraq’s state-owned Basra Oil Company possessing 30%, and QatarEnergy owning 25%.
Iraq’s oil production has stagnated in recent years as ExxonMobil, Shell, and BP reduced their operations due to poor returns from fixed-fee technical service agreements. It is something that Baghdad expects the deal will reverse by offering better terms through a new revenue-sharing model and reducing the government’s share in the project.
TotalEnergies started the primary redevelopment of the Ratawi oil field. It aims to increase production to 120,000 barrels per day by next year. The newly launched second phase is expected to double the production by 2028, as stated by the company.
Turkey’s ENKA construction company will build the oil and gas processing plant, which will have a daily output capacity of 210,000 barrels of oil and 163 million standard cubic feet of gas, according to the Iraqi Prime Minister’s office.
South Korea’s Hyundai Engineering and Construction will build the seawater treatment plant with a capacity of 5 million barrels per day. It will help drought-hit Iraq to use seawater in its water-intensive oil production process, rather than relying on freshwater from rivers and marshes.
In other news, Total has signed a deal with China’s Petroleum Engineer and Construction Corp to build a gas processing plant in southern Iraq. It will have a capacity of 600 million standard cubic feet per day.
The project includes 1-gigawatt solar energy and other plants, which will collect gas from oilfields and convert it into energy, helping Iraq break free from Iran, which supplies 40% of its gas and electricity needs.
Prime Minister Mohammed Shia al-Sudani discussed his plans to increase foreign investment, an area where Iraq has struggled since the initial surge of post-US invasion agreements more than 10 years ago.
Iraq’s oil production has remained at 5 million barrels for the last few years. Yet the country aspired to produce an output to compete with Saudi Arabia’s 12 million barrels, which is more than one-tenth of global demand.
