Iraq and French oil company TotalEnergies signed a 27 billion USD energy deal on Monday aimed at boosting crude oil production and increasing the country’s energy production capacity with the help of four oil, gas and renewable energy projects, reports Reuters.
Originally signed in 2021, the deal has faced delays amid disputes among Iraqi politicians over the terms, and talks ended in April when Baghdad accepted a reduced 30 percent stake in the project.
Following the agreement, TotalEnergies will hold a 45% stake and QatarEnergy the remaining 25%, according to Agerpres.
The CEO of TotalEnergies, Patrick Pouyanne, said it was “a historic day” after signing the agreement together with Iraq’s Oil Minister, Hayan Abdel-Ghani.
The project will start this summer and will require investments of ten billion dollars in the next four years, explained Pouyanne. He added: “This is the day the work starts, and we will deliver the projects in the next four years, for the benefit of all Iraqis.”
The integrated project to increase gas production will improve the country’s energy supply and reduce import costs.
TotalEnergies will also develop a 1GW solar power project to supply electricity to the regional grid in Basra, and has invited Saudi Arabia’s ACWA Power to join the project.
Iraq hopes to attract new foreign investors to its energy sector.
Exxon Mobil, Shell and BP have reduced their activities in Iraq in recent years, which has contributed to the stagnation of the country’s crude oil production.