BADGHDAD: French giant TotalEnergies signed a US$27-billion contract to invest in oil, gas and solar production in Iraq on Sunday, as the country faces an acute energy crisis.
But the French major plans initially to invest US$10 billion in infrastructure, the proceeds of which will then allow a second round of investments of US$17 billion, the officials said. Officials justify the lack of investment and the dilapidated state of its energy network by citing falling oil prices, which represent more than 90 per cent of state revenue.The country is highly dependent on neighbouring Iran, which supplies a third of its gas and electricity needs.The contract inked on Sunday with TotalEnergies covers four projects, an Iraqi oil ministry source said ahead of the signing ceremony.
A third project will see the construction of a complex to exploit production from the sector's gas fields.