The government of Iraq and TotalEnergies earlier today signed a long-awaited deal worth $27 billion that should see Iraq’s oil production grow and boost its reliance on domestic gas for power generation.
Iraq, a member of the Organization of the Petroleum Exporting Countries (Opec), is seeking bids from foreign companies for the exploration and development of natural gas reserves in 11 new blocks, reported Reuters.
BAGHDAD, June 16, 2023 – Qatar and Iraq have signed several energy deals during Qatar’s Emir Sheikh Tamim bin Hamad al-Thani visit to Baghdad, Reuters reported on Thursday.
Following the recent China-brokered resumption of relationship deal between historical enemies Saudi Arabia and Iran, a deal for the Kingdom to develop two key projects in Iran’s close ally Iraq is in the offing.
Iraq, OPEC’s second-largest oil producer, exported on average 3.3 million barrels per day (bpd) of oil in May, flat compared to April, according to the Iraqi oil ministry.
Iraq is going full throttle in its oil and gas development and has awarded a project to a Chinese firm to build its largest crude oil depot for export with a capacity of around 3.2 million barrels, Zawya reported, citing Iraqi officials
After a successful 2022, Iraq’s oil and gas industry has faced challenges this year following the closure of an export pipeline in the north of the country. Conflict over the semi-autonomous Kurdistan region has made it complicated to export the crude that provides most of the country’s income.
The on-off-on-off US$27 billion four-pronged megadeal between TotalEnergies and the Federal Government of Iraq appears to be back on again, although it is not quite the deal that the French oil and gas supermajor first had in mind.
An oil dispute between the Iraqi government and the semi-autonomous Kurdistan region that also involves Turkey has escalated this week, pushing oil prices higher.
The recent signing by Iraq’s federal government in Baghdad of three long-term oil and gas sector contracts with the UAE’s Crescent Petroleum – a company also heavily involved in the same sectors of Iraq’s semi-autonomous region of Kurdistan – may indicate that the ban on international oil companies (IOCs) trying to operate in both regions has now been relaxed by Baghdad.