Iraq Inks $27B Deal With France's Total To Build 4 Energy Projects

France's Total will build four giant energy projects in southern Iraq under a $27 billion deal signed in Baghdad on Sunday, the country's oil minister said, Ahmed Rashid reported for Reuters.

Photo Insert: An Iraqui oil rig

A Total official speaking at the signing ceremony said the company will start with an initial investment of $10 billion, adding that engineering work will start by the end of the year.

The deal includes three contracts between the Iraqi Ministry of Oil and Total to develop the oil field of Artawi in Iraq's southern province of Basra, while the fourth was signed between the Ministry of Electricity and Total to establish a solar energy project, said the statement, Xinhua also reported.

The French company will increase the output of the Artawi oil field from 85,000 barrels per day (bpd) to 210,000 bpd, build a gas complex to exploit the associated gas from the oil field, and provide seawater with the capacity of 7.5 million bpd to it, the statement said.

The fourth project is to build a solar energy project with a capacity of 1,000 megawatts, it added. Iraq's economy relies heavily on the export of crude oil, which brings in more than 90 percent of the country's revenues.

WEEKLY FEATURE : PAL READY TO SOAR WITH PANDEMIC