TotalEnergies Nears Completion of $27 Billion Iraqi Energy Project, Setting Stage for Major Output Surge - Trance Living

TotalEnergies Nears Completion of $27 Billion Iraqi Energy Project, Setting Stage for Major Output Surge

Key components of TotalEnergies’ US$27 billion, four-part energy program in southern Iraq have reached advanced stages of completion, positioning the country for a significant rise in oil production over the coming years. Internal progress reports reviewed by Iraq’s Oil Ministry show that construction and rehabilitation work across the sprawling initiative now ranges from 80 percent to 95 percent finished.

The largest share of remaining activity centers on the first Central Processing Facility (CPF). Rehabilitation of this unit is approximately 80 percent complete and is expected to double its crude handling capacity from 60,000 barrels per day (bpd) to 120,000 bpd once fully operational. At the other end of the spectrum, work on the Artawi-PS1 export pipeline has reached roughly 95 percent completion, indicating that the new conduit could soon enter service to channel additional volumes toward export terminals on the Persian Gulf.

A senior industry source working closely with the ministry confirmed that the French major is moving ahead of earlier timelines. According to the same official, minimal bureaucratic intervention has allowed contractors to maintain uninterrupted workflows, accelerating the schedule and reducing bottlenecks that have historically delayed energy infrastructure in Iraq.

Seawater Supply Project Anchors the Development

The centerpiece of TotalEnergies’ four-pronged strategy is the Common Seawater Supply Project (CSSP). This element is designed to draw seawater from the Persian Gulf, treat it, and send it through an extensive pipeline network to multiple onshore oil fields. Injecting treated seawater into reservoirs maintains formation pressure, thereby sustaining output and extending field life.

Initial plans call for the CSSP to deliver around six million bpd of water to at least five fields in Basra Province and one in neighboring Maysan Province. Subsequent phases envisage expanding the network to other mature assets across the south, as well as to the giant Kirkuk and Rumaila fields farther north. Both fields have been in production for decades—Kirkuk since the 1920s and Rumaila since the 1950s—and together they account for roughly 80 percent of Iraq’s historical crude output.

Reservoir data show that pressure at Kirkuk declined sharply after only about five percent of the field’s original oil in place (OIP) had been extracted. Rumaila fared better thanks to a sizable underlying aquifer, but still required water injection after roughly 25 percent of its OIP had been produced. Sustained injection volumes provided by the CSSP are therefore viewed as critical to pushing recovery factors higher and stabilizing nationwide production targets.

Balancing Water Demand and Agricultural Needs

Meeting Iraq’s long-term production aspirations will require sustained injection volumes equivalent to roughly two percent of the combined annual discharge of the Tigris and Euphrates Rivers, or about six percent of their combined flow during the low-water season. While those withdrawals appear numerically modest, the agricultural sector also draws heavily on both rivers, meaning that large-scale diversion could strain already limited freshwater resources.

The CSSP’s reliance on seawater rather than river water is therefore pivotal. By tapping the Persian Gulf, the project avoids exacerbating freshwater scarcity and reduces competition with farmers. It also aligns with practices elsewhere in the Gulf region, where desalinated or treated seawater has become a standard solution for mature onshore reservoirs.

Benchmarking Against Regional Precedents

Industry observers have drawn parallels between Iraq’s seawater scheme and Saudi Aramco’s Qurayyah Seawater Plant expansion. In that case, a two-million-bpd capacity increase required nearly four years from award of the front-end engineering and design contract in mid-2005 to first water injection in early 2009. Given Iraq’s more complex operating environment, the ministry’s assessment that the CSSP is tracking ahead of plan is considered a positive indicator for timely completion.

The Iraqi project also benefits from lessons learned on previous Gulf infrastructure undertakings, including standardized corrosion-resistant piping, advanced filtration technologies, and modular treatment units that can be installed in stages. Such features reduce construction risk and simplify future capacity additions.

TotalEnergies Nears Completion of $27 Billion Iraqi Energy Project, Setting Stage for Major Output Surge - imagem internet 39

Imagem: imagem internet 39

Potential Impact on Global Supply

If delivered on schedule, TotalEnergies’ integrated program could elevate Iraq into the ranks of the world’s top three oil producers, trailing only the United States and—depending on prevailing output levels—either Saudi Arabia or Russia. The CSSP alone is expected to unlock incremental production across multiple fields by enabling higher sustained reservoir pressure. Combined with the upgraded CPF, new pipeline capacity, and associated power infrastructure, the entire package could bring “potentially enormous gains” in a relatively short timeframe, according to officials familiar with the plan.

Beyond crude oil, the project encompasses gas capture and processing initiatives aimed at reducing flaring and supplying feedstock for domestic power generation. These measures align with Iraq’s stated objective of cutting gas flaring by 90 percent before the end of the decade, and of expanding electricity supplies to meet rising demand.

Completion of the four components will also deepen the operational footprint of TotalEnergies in the Iraqi upstream sector, reinforcing partnerships with state-run entities such as Basra Oil Company. Parallel ventures by other international operators—including BP, ExxonMobil, and Lukoil—remain in various stages of negotiation or execution, but none currently match the scale or integrated design of the French company’s package.

Still, risks persist. Security conditions, political shifts, and budget constraints have previously delayed or derailed mega-projects in the country. However, the relative absence of administrative obstacles so far has encouraged contractors to maintain a rapid pace. Should that environment continue, the CSSP and associated facilities could begin phased commissioning ahead of earlier expectations.

For global markets, additional Iraqi barrels could offer a buffer against supply disruptions elsewhere and bolster spare capacity, a topic tracked closely by organizations such as the International Energy Agency. The timing is particularly relevant as OPEC+ producers periodically adjust quotas to manage price stability.

The next milestone involves final integration testing on the Artawi-PS1 pipeline and mechanical completion of the CPF. Once these steps are cleared, project managers plan to initiate the first seawater intake and treatment trials, moving the CSSP closer to full-scale operation. Monitoring results from these initial runs will determine whether projected injection rates can be achieved without significant recalibration.

Market analysts will continue to watch progress metrics closely, given the potential implications for regional production balances and the global supply outlook. For now, the rapid advancement of TotalEnergies’ multi-billion-dollar undertaking stands out in a landscape where megaprojects often struggle to stay on track.

Crédito da imagem: OilPrice.com

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