Meed | Total deal could lead to project boom in Iraq

Total deal could lead to project boom in Iraq

10 April 2023

The finalisation of the latest $27bn project deal announced by TotalEnergies, QatarEnergy and Iraq has surprised many stakeholders in the country’s energy sector.

The announcement came after a long period of, at times dramatic, negotiations.

Since 2021, progress on the projects has stalled due to disputes over the terms of the agreement.

In January and February this year, as negotiations were entering their final stages, it was reported that Total had started to pull senior staff out of Iraq.

At the time, the Iraqi member of parliament Mustafa Jabbar Sanad said it was unclear whether the move was simply a negotiating tactic.

When negotiations blew past a 15 February deadline earlier this year and then another deadline a month later, many stakeholders in the country’s energy sector expected many more months to pass before common ground would be found, if it could be found at all.

“I was very pessimistic about a deal being finalised,” said one industry source. “This was all meant to be tied up and finished in 2021, so after many years of failing to finalise the details, why would things change now?

“The fact that things appear to have been tied up so neatly in the end is very surprising.”

Positive signal

A key sticking point in the final phase of the negotiations was the stake that the Iraqi government would hold in the venture.

Iraq pressed hard for a 40 per cent stake, but this was reduced to just 30 per cent in the final deal.

After signing the deal, Total said it was: “A strong and positive signal for foreign investment in the country.”

The $27bn price tag attached to the deal is significant for Iraq. It is likely to increase optimism about the country’s project market, especially when seen in relation to other major economic announcements over recent months.

The fact that things appear to have been tied up so neatly in the end is very surprising

Industry source

So far this year, Iraq has tendered six major refinery contracts as part of a major downstream push.

If the drive to develop these refineries goes to plan, it could significantly boost the Iraqi economy by dramatically raising the volume and quality of the refined products that it can produce and export.

Another positive signal to investors and stakeholders was the finalisation of a three-year draft budget law that has been sent to parliament for approval.

For this year, the budget stands at ID197.82tn ($152.17bn) and it will be repeated for three years with the possibility of changing the numbers after the approval of the cabinet and parliament.

Strategically important projects

Taken together, the approval of Iraq’s first multi-year budget, along with a major downstream push, and the finalisation of the $27bn deal with TotalEnergies and QatarEnergy sets the scene for a potential explosion in infrastructure activity.

The four projects covered by the deal with TotalEnergies and QatarEnergy are not only large in scale, but are of significant strategic importance.

The four projects are:

The gas growth integrated project (GGIP)
The $4bn common seawater supply project (CSSP)
A project to develop the Artawi field
The establishment of a 1GW solar energy project for the Electricity Ministry

The GGIP has previously been described as the most important project of the four.

The facility is expected to process 300 million cubic feet a day (cf/d) of gas and double that after a second development phase.

Large volumes of gas are currently flared from these fields, causing significant environmental damage.

Collecting and processing this gas will generate increased hydrocarbons revenues and reduce environmental damage. The planned central gas complex will be located in Artawi.

The gas processing project will supply Iraq’s national gas network to generate electric power, as well as to increase the production of gas products, including liquefied petroleum gas and condensate.

The CSSP is also strategically important as it will address water shortages in Basra that are fuelling political instability and provide water for injection into oil fields to boost production at ageing fields.

The solar project will address electricity shortages, while developing the Artawi field will help Iraq boost upstream production capacity and capitalise on higher global oil prices.

After so many previous announcements falling through and promises being broken, the Iraqi government has lost a lot of trust

Senior figure at an international engineering company

Timing is everything

While the outlook for projects and investment in Iraq looks far better than it has for a long time, many stakeholders remain concerned that the promised developments will not occur as expected and are refraining from making significant investments to try to capitalise on the situation.

“After so many previous announcements falling through and promises being broken, the Iraqi government has lost a lot of trust,” said one senior figure at an international engineering company.

While recent announcements make it seem like an era of opportunity could be nearing for engineering companies looking to win big contracts, Iraq might struggle to find contractors willing to take on the projects at a favourable price.

“Timing is everything,” said one contractor. “Right now, there are also a lot of profitable engineering opportunities for engineering companies elsewhere in the region as well.”

Nations such as Saudi Arabia and the UAE are in the midst of large spending sprees as they drive to expand energy infrastructure projects.

Both nations are seen as far less risky locations for investment project work. It may be difficult to attract the best companies to work in Iraq over the coming years if the country is not willing to make favourable offers to make it worth their while.

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Wil Crisp

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Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

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READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

To see previous issues of MEED Business Review, please click here

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In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

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In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

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State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
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- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
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- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
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- Great Wall Drilling Company (China)
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- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
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Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

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Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

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It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

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The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.