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Iraq and Total consider becoming friends-with-oil-benefitsMENA

Iraq and Total consider becoming friends-with-oil-benefits

Iraq’s oil minister, Ihsan Abdul Jabbar, announced that his country is holding discussions for a “giant” agreement with the French oil conglomerate Total — $7b to be exact. The contract is expected to be finalized by July, and, once signed, Total will build infrastructure to develop oil fields and produce gas.

For you oil & gas nerds out there: the objective would be to target the low-carbon industry and capture all flaring gas. The first stage of the project is estimated to produce 1GW of solar energy. Currently, Iraq’s current gas output stands at 1.5b scf/d but is expected to reach 4b scf/d by 2025.

why it matters
In this case, size matters! Total's massive investment into Iraq's oil and gas production capabilities has the potential to boost the country's independence and competitiveness in the MENA region.