Iraq to activate $27 billion deal with TotalEnergies

Baghdad (IraqiNews.com) – The Iraqi Minister of Oil, Hayan Abdul-Ghani, said on Sunday that the talks Iraq is holding with the giant French energy company, TotalEnergies, to resolve the outstanding points in a delayed deal worth 27 billion USD, reached advanced stages.

“We are close to conclude the contract,” Abdel-Ghani said at an energy conference.

The agreement, which Baghdad hopes will contribute to reviving foreign investment in the country, was signed in 2021 to allow TotalEnergies to build four oil, gas and renewable energy projects with initial investments of 10 billion USD in southern Iraq over 25 years.

However, disagreements between Iraqi politicians over the terms of the agreement hindered its implementation.

Sources said that Iraq’s request for a 40 percent stake in the project is a major point of contention, as TotalEnergies wants a majority stake, Reuters reported.

In response to a question about whether the issue of Iraq’s share in the project has been resolved, Abdul-Ghani said that the time is not appropriate to discuss the matter, adding that the announcement of the shares will take place when an agreement is reached.

Abdul-Ghani also mentioned that Iraq is committed to maintaining an oil production rate of 220,000 barrels per day, in line with the quota set by the latest agreement of the OPEC+ alliance to cut production.

The Iraqi minister added that Iraq is ready to increase its production if the OPEC+ alliance decides to do so.

Iraq to activate $27 billion deal with TotalEnergies