GGIP moving ahead on schedule as Qatar enters solar effort

Iraq’s headline-grabbing, multi-billion-dollar, cross-sector GGIP project is moving forward, with gas on schedule and a familiar new partner on solar

WHAT: TotalEnergies is reported to be on schedule with its integrated oil, gas, solar and seawater project in Iraq.

WHY: Having already taken a share in the gas side of the project, QatarEnergy this week joined the French firm on the solar development.

WHAT NEXT: The project will be developed and rolled out over various phases between now and 2027.

TotalEnergies is on schedule on the development of Iraq’s $27bn Gas Growth Integrated Project (GGIP), working in line with the previously defined timeline.

Meanwhile, QatarEnergy, a minority partner in the gas project has acquired a 50% stake alongside the French firm in an associated solar project.

TotalEnergies’ timeline

Iraq’s Ministry of Oil has reaffirmed that its gas investment project with TotalEnergies is proceeding on schedule. The ministry confirmed in a statement received by the Iraqi News Agency (INA) that the development of GGIP, a critical energy and infrastructure project in Iraq’s Basra region, remains on track.

Iraq’s Undersecretary of the Ministry for Extraction Affairs, Basem Mohammed Khader, chaired the seventh meeting of the project’s Joint Management Committee, alongside other officials from Iraq’s gas and oil sectors, including Izzat Saber, the Undersecretary of the Ministry for Gas Affairs; Basem Abdul Karim, Director General of Basra Oil Co.; and Hamza Abdul Baqi, Director General of South Gas Co.

During the meeting, Khader said: “The progress of the implementation of the gas investment project implemented by the French company Total in Basra is proceeding within the specified timeframes, as confirmed in the government programme and the directives of Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul Ghani.”

Khader emphasised that this project represents a significant strategic endeavour with high expectations, including the development of the Artawi field and investments in five other oilfields. The project’s dual phases aim to develop these fields with a total production capacity of 600mn cubic metres, distributed across two phases of 300mn cubic metres each.

Khader detailed that GGIP includes multiple components: gas development, solar electricity generation, and a seawater project for injecting water into oilfields to sustain pressure levels. The solar project will add 1GW of capacity through four phases, each contributing 250MW. Further discussions focused on how to initiate an accelerated gas investment initiative, newly added to the project scope following directives from the Iraqi leadership to end gas flaring and maximise the use of associated gas, with a capacity of 50 cubic metres.

According to the ministry’s statement, the meeting also discussed the drilling operations scheduled to begin in December, with tenders for these activities having been awarded. Seismic surveys were assigned to a Chinese company in collaboration with Iraq’s Oil Exploration Company, and the ministry noted ongoing negotiations regarding the seawater project. The meeting reiterated the importance of employing local Iraqi workers, including recent graduates, with TotalEnergies committed to direct employment contracts without third-party involvement.

The GGIP joint venture, spanning 25 years, aims to increase oil output by 125,000 barrels per day (bpd) from Artawi, capture gas from oilfields across Iraq, and develop solar energy and a seawater supply network. With a valuation of up to $27bn, the first phase is expected to see an initial investment of approximately $10bn. After two years of negotiations, QatarEnergy joined GGIP, securing a 25% stake alongside TotalEnergies’ 45% and Iraq’s Basra Oil Co. (BOC), which holds 30%.

In October, US-based engineering firm KBR completed the front-end engineering and design (FEED) phase for the Artawi field, enabling 300mn cubic feet per day of gas production, with the next phase expected to double output to 600mn cubic feet per day. This phase follows a seismic survey contract awarded by TotalEnergies in June to China’s BGP, marking its re-entry into Iraq after a hiatus since 2015 due to security concerns. The Artawi oilfield, discovered in 1950 in southern Iraq’s Basra governorate, has around 10bn barrels of proven reserves.

Solar Progress

Alongside the gas project, QatarEnergy has recently acquired a 50% stake in GGIP’s solar project, situated at the Artawi gas field. Under this agreement, QatarEnergy will hold a 50% share in the solar photovoltaic initiative, with TotalEnergies retaining the other half, pending regulatory approvals.

This project, set to be one of the world’s largest solar installations, will deploy 2 million bifacial solar panels, designed to track the sun’s path. Upon completion, it will supply up to 1.25GW of solar power to Iraq’s Basra region. The initiative will be rolled out in phases from 2025 to 2027, and is expected to provide electricity to approximately 350,000 homes. Qatar’s Minister of State for Energy Affairs and CEO of QatarEnergy, Saad Sherida Al-Kaabi, expressed optimism, saying, “I am pleased to have concluded our entry into this very important project for Iraq’s energy sector, and look forward to working with our strategic partner, TotalEnergies, to progress it to fruition.”

Earlier this week, Iraq’s Electricity Minister, Ziad Ali Fadel, met with TotalEnergies officials to discuss advancements in the solar power plant’s development. Land allocation for the project is complete, and TotalEnergies has presented its plans, including connection lines to Basra province and another line to Dhi Qar. The plant’s production capacity is set at 1GW, with an expected connection contract to be signed with the Southern Electricity Transmission Company within two weeks. Currently, TotalEnergies is conducting demining operations at the site for safety assurance prior to construction, a move welcomed by the Iraqi government as part of a larger push to diversify Iraq’s energy sources and increase clean energy production.

Block Party

In addition to the GGIP and solar project, Iraq’s Ministry of Oil announced an exploration agreement involving China National Offshore Oil Co. (CNOOC) this week. The overseas subsidiary of CNOOC has signed a contract for Block 7, a 6,300-square-km area that spans Iraq’s central and southern provinces, including Diwaniya, Babil, Najaf, Wasit, and Muthanna.

On October 30, CNOOC reported that its Africa Holding Ltd unit had entered into an exploration, development, and production contract (EDPC) for the Block 7 concession with Iraq’s Midland Oil Co. (MOC), a subsidiary of the Ministry of Oil. CNOOC will hold a 100% interest in Block 7, underlining China’s expanding footprint in Iraq’s energy sector.

This contract follows CNOOC’s success in securing awards during Iraq’s Licensing Rounds 5+ and 6, which saw Chinese companies taking the majority of bids to boost Iraq’s domestic oil and gas production. More than 20 pre-qualified companies entered the bid rounds, with Chinese firms emerging as the dominant winners, securing a total of 10 licences. The Block 7 agreement includes an initial three-year exploration period and was awarded on a profit-sharing basis, underscoring Iraq’s efforts to increase oil and gas output to meet growing domestic energy demands.

These developments – spanning gas, solar, and exploration projects – signal Iraq’s commitment to enhancing its energy infrastructure, leveraging international partnerships, and diversifying its sources of power generation in a region that continues to balance traditional oil production with emerging clean energy initiatives.