The Energy Ministerial Council stresses the importance of the contracts concluded with the French “Total”
The Energy Ministerial Council stresses the importance of the contracts concluded with the French “Total”
09.09.2021 – 13:24
Baghdad – people
On Thursday, the Energy Ministerial Council praised the Prime Minister’s support for the oil and energy sectors, stressing the importance of the contracts concluded with the global company Total.
The Ministry of Oil stated in a statement, of which “Nass” received a copy, (September 9, 2021), that “Oil Minister Ihsan Abdul-Jabbar Ismail chaired the Ministerial Council for Energy, in the twenty-fourth regular session of 2021, and the Council discussed the topics on its agenda.”
The council stressed the “importance of moving forward with solar energy projects and the need to expedite their completion, and work to increase the area of investment in this field.”
The Council praised “the great support of the Prime Minister and his sponsorship of the decrees of signing oil and energy contracts with Total, which constitutes a great addition to the energy industry in Iraq,” praising “the role of the Ministry of Oil in this regard.”
The Council emphasized “the ministries concerned with developing the necessary plans to preserve the environment and reduce hydrocarbon emissions, and Iraq’s commitment to international agreements in this regard.”
The council hosted, according to the statement, “Jassem Al-Falahi, Technical Undersecretary of the Ministry of Environment, Vice-President of the General Assembly of the United Nations Environment, where he gave a comprehensive presentation on the government’s efforts in the field of environment and mechanisms for implementing the commitments contained in international agreements on climate and environment, and working to develop and support clean energy projects.” .
On Sunday, the Ministry of Oil revealed the details of the four projects that Iraq signed today with the French company Total, stressing that Iraq will not pump any money into those projects, while indicating that the signed projects will contribute to easing the burden on the country’s financial budget.
The ministry’s spokesman, Assem Jihad, told the official channel, and “Nas” followed him (September 5, 2021), that “the presence of the French company Total in Iraq will reflect positively on investment in the country,” stressing that “the company will pump 27 billion dollars into these projects, while the Iraq will not inject any money, which is a very important step.”
He added that “the projects signed with the French company are four, the first is the development of the Artawi oil field, whose available production is 85,000 barrels per day, to a peak production of up to 210,000 barrels per day, the introduction of modern technology, the training of Iraqi staff, and the provision of job opportunities for Iraqi citizens.”
He pointed out that “the second project is the establishment of the Artawi gas complex with a capacity of 600 million standard square feet, for the purpose of investing gas burned from oil fields, which leads to reducing the import of gas from neighboring countries, producing a quantity of condensate estimated at 12000 barrels per day, and producing a quantity of LPG is estimated at 3000 tons per day for the local market, in addition to introducing modern technology, training Iraqi staff, and providing job opportunities for citizens.
And he indicated that “the third project includes the supply of joint sea water, with the exception of part of the pipeline network with a capacity of 5 million barrels of water per day, the treatment plant and a design capacity of 7.5 million barrels of water per day, in addition to introducing modern technology, training Iraqi staff, and providing job opportunities.” He pointed out that “this will contribute to preserving the water of rivers and wells and perpetuate the oil production process, because without water oil production will decrease.”
Jihad continued, “The fourth project, which is for the benefit of the Ministry of Electricity, includes the establishment of an electric power plant, which depends on solar energy, to produce electrical energy at a cost of less than 45% of the cost of energy production from current power stations, with a total production capacity of 1,000 megawatts.”
Regarding the duration of the project, he stressed that “some projects may have the first phase of 4-8 years, depending on the stage of development of the field or project.”
And if the French company Total requested sovereign guarantees from Iraq, Jihad said: “The French company did not ask for sovereign guarantees from Iraq, – which is a rare case – despite it pumping large funds, and this means that Iraq is a promising country and is ready for investment,” explaining that Iraq is stepping up An important step in this direction, and we are proud of these circumstances that a company of this size comes and is determined to help Iraq.”
Assem Jihad said that “these projects will reduce the burden on the budget,” explaining that “the Ministry of Oil and the government are heading to invest in clean energy and are committed to international laws to preserve the environment, and these projects will help clean the Iraqi environment.”
He explained about the estimation of the price of a barrel of oil, that “it is determined according to the conditions to which the oil market is exposed, provided that if the price of oil decreases or rises, a certain price must be set for work, so we estimated that the price of a barrel will be 50 dollars, and that Iraq will not pump money into the oil market.” these projects.”
A spokesman for the Ministry of Oil confirmed that “the accompanying Iraqi gas is estimated at 5 million cubic meters, and we are working on investing in collecting this quantity.”
In the presence of Prime Minister Mustafa Al-Kazemi, Iraq signed, on Sunday, an agreement for optimal investment projects for associated gas and the development of oil fields with the French company Total.
And the media office of the Council of Ministers stated in a statement, of which “Nass” received a copy, (5 September 2021), that “today, under the patronage of Prime Minister Mustafa Al-Kazemi, the signing ceremony took place with the initials, on the umbrella of the agreement for optimal investment projects for associated gas and the development of oil fields, It includes three contracts between the Iraqi Ministry of Oil and the French Total, and the fourth contract for the solar energy project between the Ministry of Electricity and the French Total.
The agreement aims, according to the statement, to “achieve the optimal investment of Iraq’s wealth, including oil and gas reserves and water resources, and to secure a high degree of stability for electrical energy, as well as raising oil production capacity.”
The first project includes “the development of the Artawi oil field, whose available production is 85,000 barrels per day, to a peak production of up to 210,000 barrels per day, the introduction of modern technology, the training of Iraqi staff, and the provision of job opportunities for Iraqi citizens.”
With regard to the second project, the statement clarified, “The establishment of an Artawi gas complex with a capacity of 600 million standard square feet (mQF); for the purpose of investing gas burned from oil fields, which leads to reducing gas imports from neighboring countries, producing an amount of condensate estimated at 12000 barrels per day, and producing an amount of of LPG, estimated at 3000 tons per day for the local market, in addition to introducing modern technology, training Iraqi staff, and providing job opportunities for citizens.
As for the third project, the statement indicated that it “includes the supply of joint sea water, with the exception of part of the pipeline network with a capacity of 5 million barrels of water per day, the treatment plant and a design capacity of 7.5 million barrels of water per day, in addition to introducing modern technology, training Iraqi staff, and providing opportunities the job”.
The fourth project includes “the construction of an electric power plant based on solar energy, to produce electrical energy at a cost of less than 45% of the cost of energy production from current power stations, with a total production capacity of 1000 megawatts.”
The statement pointed out that “the total value of the four projects amounts to 27 billion dollars, while the total return on profits during the contract period reaches 95 billion dollars, calculating the price of a barrel of 50 dollars.”
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