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Minister Says Iraq Considering $7B Oil Deal With Total

 |  March 30, 2021

Iraq is discussing a “giant” agreement with French oil giant Total SE to build large infrastructure installations, develop oil fields and produce gas, Oil Minister Ihsan Abdul Jabbar told Bloomberg.

The minister said he expected the contract to be finalized before July. The relationship with Total will be based on targeting the low-carbon industry and capturing all flaring gas, and is set to produce 1GW of solar energy in the first stage. A specialized team from the oil ministry is leading these discussions with Total.

“The agreement is giant, and the volume of the investment exceeds $7 billion,” the minister said.

Abdul Jabbar said conditions, including the political and administrative decisions for the economic model that protects the rights of both parties, had been hammered out already.

In January, Iraq signed a memorandum of understanding with Total CEO Patrick Pouyanne on capturing natural gas, clean energy and infrastructure. Talks between Iraq and Total were first reported in October.

Iraq this year is also expected to ink a deal to build an oil export pipeline from the southern province of Basra to Jordan’s Aqba port on the Red Sea. A framework agreement may be signed before mid-April, Abdul Jabbar said.

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