Iraq and French energy giant Total are in talks on two natural gas projects, the country’s oil minister said on Saturday. The projects are part of Iraq’s efforts to reduce electricity and gas imports from Iran, analysts said. The talks discuss investments in two gas projects in west of Baghdad and in Basra. The ministry’s statement, however, didn’t disclose further details.
Total currently controls a 22.5% stake in the Halfaya oil field in the southern Iraqi province of Missan. It also holds an 18% interest in the Sarsang exploration block in the semi-autonomous Kurdish region. Iraq has 132 Tcf of gas reserves and currently captures 1.5 Bcfd of associated gas. OPEC’s second-largest producer intends to increase captured gas by 1.2 Bcfd by the end of 2023 to meet the growing demand for the fuel to generate electricity.
The additional 1.2 Bcfd of captured gas will include 300 MMcfd from Halfayah fields and 200 MMcfd from Nasiriyah. The completion of both projects are expected to take place at the end of 2022. According to a World Bank study, Iraq burned roughly 18 Bcm (632 Bcf) flared gas in 2019. Iraq also plans to develop Akkaz and Mansuriya gas fields in cooperation with international oil companies. The ministry has invited global players to participate in developing the 4.5 Tcf Mansuriya gas field.
