Baghdad agrees to 30% stake in TotalEnergies $27 billion project
The new logo of TotalEnergies during its unveiling ceremony at La Defense on the outskirts of Paris, France. Photo: AFP
Baghdad (IraqiNews.com) – Sources revealed on Tuesday that Baghdad reached an agreement to hold a 30 percent stake in TotalEnergies long-delayed 27 billion USD project in Iraq, Reuters reported.
The deal was signed in 2021 for TotalEnergies to build four oil, gas and renewable energy projects with an initial investment of 10 billion USD in southern Iraq over 25 years.
But several setbacks amid disputes between Iraqi politicians over the terms hindered the deal.
The Iraqi Minister of Oil, Hayan Abdul-Ghani, mentioned last month 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 in March.
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.
The agreement to lower the share to 30 percent was struck after meetings in Baghdad over the past few days, an industry source told Reuters.
TotalEnergies did not immediately respond to Reuter’s request for comment.
“The deal should be activated within days,” a senior Iraqi official in the Ministry of Oil said.