TotalEnergies and Iraq sign $27 billion deal

France's Total signed a deal worth US $27 billion to build four giant energy projects in southern Iraq, Oil Minister Ihsan Ismail signed the contract at a Baghdad ceremony with TotalEnergies chief Patrick Pouyanne.

"This is the largest investment in Iraq by a Western company," Ismail said. "Implementing these projects is the challenge we face now."

"Happy to be in Basra where I visited gas and oil fields," Pouyanne tweeted in January. "Reducing flaring and increasing gas production is a priority for Iraq as well as for Total. Let's work together!"

Pouyanne said during the signing ceremony that the initial investment will start with US $10 billion. He added that the plan is to mobilise teams in Iraq by the end of 2021.

The projects will include two solar power plants and one to increase crude output from the Artawi oilfield. The first investment will be a $3 billion investment by Total to inject sea water into oilfields to enhance crude recovery which will help Iraq depend less on Iran's oil, the minister said.