TotalEnergies begins construction on final two major GGIP projects in Iraq

TotalEnergies has commenced construction on the final two major components of its Gas Growth Integrated Project (GGIP) in Iraq, a strategic initiative in partnership with Basra Oil Company and QatarEnergy. This includes the Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field, aiming to increase Ratawi's oil production to 210,000 bpd by 2028 with no routine flaring, process 160 Mcf/d of associated gas for 1.5 GW of power generation, and conserve freshwater. The comprehensive project, which also features a 1 GWac solar facility, is set to begin its first phase of gas, oil, and solar operations in early 2026, highlighting TotalEnergies' significant investment in Iraq's energy infrastructure and sustainability.

Analysis

TotalEnergies (TTE) has advanced its strategic position in Iraq by launching the final two components of the multi-faceted Gas Growth Integrated Project (GGIP). The project, where TTE holds a 45% operating stake alongside Basra Oil Company and QatarEnergy, provides a clear production growth trajectory, with the Ratawi oil field development targeting an output of 210,000 barrels per day by 2028. Critically, the GGIP integrates significant ESG-positive elements that differentiate it from traditional oil projects; these include the Common Seawater Supply Project to conserve 250,000 cubic meters of freshwater daily, a commitment to 'no routine flaring' at the Ratawi field, and the inclusion of a 1 GWac solar facility. Furthermore, the plan to process 160 Mcf/d of associated gas to generate 1.5 GW of electricity addresses critical infrastructure needs in Iraq, potentially strengthening the project's long-term viability and social license to operate. The high-level political backing from the Iraqi government, combined with a clear timeline for first-phase operations to begin in early 2026, solidifies the project's strategic importance for TTE's integrated energy and emerging market growth narrative.

Key Decisions for Investors

• Investors should incorporate the tangible production growth from the Ratawi field, projected to reach 210,000 bpd by 2028, into their medium-term valuation models for TotalEnergies.
• The project's strong ESG components, such as freshwater conservation, elimination of routine gas flaring, and a 1 GW solar plant, may enhance TTE's appeal to ESG-mandated funds and potentially lead to a valuation premium over less-diversified peers.
• While the project carries strong political backing, investors should monitor execution progress and regional geopolitical stability, as any delays could impact the anticipated start of operations in early 2026 and the project's overall return profile.