TotalEnergies has signed an agreement with Iraq spanning 25-year for fossil fuel and renewables.
French energy giant TotalEnergies, in a recent press meet, has stated that it is planning to invest a huge sum of $27 billion in Iraq in a 25-year deal which will, in turn, boost its position in the country. The deal will include various investments in energy projects, including seawater into oil fields to enhance the amount of oil recovered, a natural-gas processing plant, and a solar farm. The company has said that there will be an initial investment of $10 billion.
These projects would help TotalEnergies to improve Iraq's electricity supply. Also, Iraq is already facing severe scarcity of drinkable water, especially in the summer; this project will allow them to overcome these issues. Also, it will help them to reduce the dependency on Iranian natural gas. Besides, TotalEnergies have planned this deal tactically at a time when oil and gas companies are starting to reassess their portfolios to address concerns over their carbon emissions. This deal will also focus on helping Iraq to reduce high carbon emissions.