2023-12-31T06:02:01+00:00
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/ “MEED” magazine reported that spending on projects to increase energy production recorded unprecedented records in the year 2023 in the Middle East region, while the project to develop gas production in Iraq ranked first among those projects.
The magazine said in a report that contracts for energy generation and transmission projects valued at approximately $25.3 billion were awarded between January and November in 2023, and this momentum is expected to continue during the coming period.
According to the report, the project to develop gas production in Iraq, at a financial cost of up to 10 billion dollars, came in first place and is now under study, and the project to develop the “Upper Zakum” field in the Emirates came in second place, at a cost of 7 billion dollars, and is now in the stage of evaluating offers. .
The magazine indicated that the project to develop gas production from the Dorra field in the joint region between Kuwait and Saudi Arabia, estimated to cost about $5 billion, came in third place, and is now in the stage of preparing preliminary designs and plans, and work on implementing the project is scheduled to begin in the year 2025, to be completed. Completion by 2027.
In July 2023, Iraq and the giant French company Total Energy signed a long-awaited energy agreement worth $27 billion aimed at increasing oil production and enhancing the country’s ability to produce electricity with four oil and gas projects and renewable energy sources.
The deal was signed in 2021 with initial investments of $10 billion in southern Iraq over 25 years, but it was postponed amid disagreements between Iraqi politicians over the terms.
The deal closed in April, when Iraq agreed to take a smaller than initially requested stake in the project of 30%, with Total Energies taking a 45% stake and Qatar Energy the remaining 25%.
The Gas Growth Integrated Project (GGSIPU) aims to improve the country’s electricity supply, including by recovering gas flared in three oil fields to supply power plants.
Total Energy said it would also develop a 1-gigawatt solar power plant to supply electricity to the Basra regional grid, and invited Saudi Arabia’s ACWA Power to join the project.