Baghdad (IraqiNews.com) – TotalEnergies CEO Patrick Pouyanné met with Iraqi Prime Minister Ali Falih al-Zaidi in Baghdad on Sunday to discuss growing oil and gas output, as Iraq attempts to improve its energy economy despite impediments to shipments via the Strait of Hormuz caused by the continuing regional conflict.
Pouyanné was joined by ConocoPhillips CEO Andy O’Brien and accompanying delegations for negotiations about investment in Basra’s Bin Umar oilfield, which includes plans to expand crude output and collect associated gas.
According to the Prime Minister’s Office, the conference discussed investment methods and deadlines for increasing production at Bin Umar, as well as prospects to boost output at other Iraqi oilfields.
Al-Zaidi emphasized the necessity of growing Iraq’s associated gas resources, stating the government’s goal of eliminating gas imports in the future years by increasing local production and making better use of gas that is now wasted via flaring.
Despite the lack of fresh investment estimates or strict deadlines, firm leaders stated a desire to speed work and reach production objectives.
The high-level conference comes at a crucial moment for Iraq’s energy industry, as the continued regional violence and disruptions to shipping via the Strait of Hormuz highlight the country’s reliance on southern oil export ports.
Iraq is also looking for other export routes to minimize its dependency on the strait, such as a massive oil pipeline that would link southern Iraq to Syria’s Mediterranean coast via Baniyas.
The planned route might let Iraqi petroleum reach foreign markets without traveling through Hormuz, thus improving export security during times of regional unrest.
TotalEnergies has previously indicated interest in developing alternate energy export routes, including via Syria, but Sunday’s official statement did not say if the planned pipeline was mentioned during the Baghdad conference.
The French energy company is already a big investment in Iraq, with projects aimed at expanding oil output, collecting associated gas, and boosting power generation.
Iraq continues to depend on imported gas for power generation, despite having huge gas reserves generated alongside crude oil.
The meeting with TotalEnergies and ConocoPhillips shows Iraq’s attempts to recruit foreign knowledge and investment while tackling two significant weaknesses in its energy sector: reliance on imported gas and reliance on export routes threatened by regional violence.
Progress in oilfield expansion, gas capture, and alternate export facilities might help Iraq enhance its energy security and preserve its position as a major oil producer in the face of increasing geopolitical challenges.
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