French firm TotalEnergies has signed an agreement with the Government of Iraq to invest a total of $27bn in four energy projects in the country.
The agreement includes three contracts with the Iraqi Ministry of Oil and one with the Ministry of Electricity.
According to a Reuters report, around $3bn has been earmarked for a project that involves injecting seawater into oilfields to increase crude recovery.
Another $2bn will be invested to build a gas processing plant, the news agency reported quoting Iraqi Minister of Oil Ihsan Abdul Jabbar. The facility will process around 600 million cubic feet of gas per day (mcf/d) following two phases of development.
Additionally, TotalEnergies will help in increasing production from the Ratawi oilfield from 85,000 barrels per day (bpd) to 210,000bpd.
The fourth contract involves building a solar power plant to increase electricity generation.
Initially, TotalEnergies will invest around $10bn in the programme. It expects to mobilise teams in the country by the end of this year.
Notably, TotalEnergies is one of the few energy firms planning to strengthen its footprint in Iraq.
Earlier this year, the company secured approval to increase production at the Ratawi gas field.
In the second quarter of 2021, TotalEnergies reported strong results driven by growing crude demand and improved oil prices.
The French company’s adjusted net income was $3.5bn in the three months ending June 2021, compared to $126m in the same quarter a year ago.