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Iraq Seals Major Energy Pact with TotalEnergies and QatarEnergy

Baghdad has inked a joint operating agreement among its Oil Ministry, Basra Oil Company, France’s TotalEnergies, and QatarEnergy to run the Artawi oilfield under the Gas Growth Integrated Project, the Prime Minister’s Office said on Sunday.

The deal launches the second phase of Artawi’s redevelopment and construction of the Common Seawater Supply Project, which will transport 5 million barrels of seawater per day to southern oilfields. It forms part of a large portfolio of contracts worth $27 billion aimed at oil, gas, seawater treatment, and renewable energy infrastructure.

Under the GGIP consortium, TotalEnergies holds 45 per cent, Basra Oil Company 30 per cent, and QatarEnergy 25 per cent. The initiative is structured around four major sub-projects: developing gas production and eliminating flaring from several fields, redeveloping the Artawi oilfield, building seawater treatment facilities to supply injected water and reduce freshwater usage, and a 1-gigawatt solar farm for clean electricity.

TotalEnergies is partnering with Turkey’s ENKA to build a central oil and gas processing facility with capacities of 210,000 barrels of oil per day and 163 million standard cubic feet of gas daily. It also has signed with China’s Petroleum Engineering & Construction Corporation to build a gas processing plant able to handle 600 million standard cubic feet per day, and with South Korea’s Hyundai Engineering & Construction for a seawater treatment plant with 7.5 million barrels/day capacity.

Prime Minister Mohammed Shia al-Sudani lauded the agreements as proof of improvement in Iraq’s investment climate and a sign that global energy firms view Iraq as open for business in infrastructure and clean energy sectors. Qatar’s Energy Minister Saad Sherida al-Kaabi described CSSP and Phase 2 of Artawi redevelopment as “final major components of Iraq’s integrated gas project,” emphasizing their role in energy resilience and sustainability.

Environmental impact is a core consideration: by replacing freshwater with treated seawater for oilfield operations, the project aims to ease strain on the Tigris and Euphrates rivers and preserve agricultural water supplies. Flaring reduction efforts in the associated gas projects are expected to cut millions of tons of CO₂ emissions annually.

Operational milestones include raising Artawi’s oil production to 210,000 barrels per day by 2028 under phase two. The solar farm, spanning more than 2,000 hectares, is planned to generate clean electricity for approximately 350,000 homes in southern Iraq and aligning with government goals to grow renewable energy’s contribution.

Local economic effects are substantial: tens of thousands of jobs will emerge across construction and permanent operations. The project consortium aims for over 85 per cent of direct jobs to be filled by Iraqis. Technical capacity building, local content, and regional infrastructure development are embedded in contract obligations.
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