PARIS (AFP) – French energy giant TotalEnergies announced yesterday an agreement with Iraq on a USD10 billion project that had been delayed due to disagreements over the terms of a deal aimed at improving the country’s electricity supply.
The contract, originally signed in 2021, includes investments in oil, gas and solar production.
But the two sides had disagreed over the terms, with an Iraqi Oil Ministry spokesman saying earlier this year that Baghdad wanted a 40-per-cent stake, with TotalEnergies getting 60 per cent.
A source at the ministry said the French company wanted Iraq to have a smaller stake.
TotalEnergies said yesterday that Iraq’s Basrah Oil Company will get a 30-per-cent stake in the project while a Qatari firm – QatarEnergy – will get 25 per cent and the French firm will own 45 per cent.
The agreement follows four rounds of talks between TotalEnergies chief executive Patrick Pouyanne and Iraqi Prime Minister Mohammed Shia al-Sudani, the company said. Despite being home to a wealth of hydrocarbon reserves, Iraq’s neglected electricity grid is dilapidated and a victim of the country’s rampant corruption, with power cuts lasting for hours.
Neighbouring Iran currently supplies a third of Iraq’s gas and electricity, and Baghdad is seeking greater energy independence.
The USD10 billion Gas Growth Integrated Project (GGIP) includes recovering flared gas from oil fields to power electricity-generation plants.
A one-gigawatt solar power plant will be built to supply electricity to the Basra regional grid, with Saudi firm ACWA Power joining the project, TotalEnergies said.
