TotalEnergies, the French oil and gas giant, has initiated the construction of a gas processing facility in Iraq, marking the first phase of an ambitious multi-energy project. Known as ArtawiGas25, the facility will process 50 million cubic feet of gas daily from the Ratawi field, providing sufficient energy to power 200,000 households in the Basra region.
In May, TotalEnergies and the Iraqi government agreed to move forward with the long-delayed $27 billion energy project. This follows a 2021 agreement in which Total committed to developing four oil, gas, and renewable energy projects in southern Iraq over 25 years, with an initial investment of $10 billion.
As part of the agreement, Iraq reduced its stake in the project to 30%, paving the way for foreign investment in the country. This development comes after years of stagnation in Iraq’s oil production, driven by instability and the retreat of major players like ExxonMobil, Shell, and BP. However, Iraq’s recent period of relative stability has increased its appeal to foreign investors.
TotalEnergies CEO Patrick Pouyanne expressed optimism about the partnership, stating, “The government of Iraq confirmed the whole contract, no modification at all… so that was for me more than good news.”
Prospects for Oil Exports to Türkiye
Iraq may soon resume oil exports through a pipeline to the Turkish port of Ceyhan on the Mediterranean coast. Exports through the Iraq-Türkiye pipeline, amounting to 450,000 barrels per day, were halted on March 25 after an ICC ruling ordered Türkiye to pay Baghdad $1.5 billion in damages for unauthorized exports by the Kurdistan Regional Government (KRG).
In June, the Iraqi oil ministry, Kurdistan’s Ministry of Natural Resources, and international oil companies met in Baghdad to discuss restarting production and exports, signaling progress toward resolving the dispute.
TotalEnergies’ renewed commitment and Iraq’s efforts to stabilize its energy sector could signal a new era of development, positioning the country as a key player in the global energy market.
