TotalEnergies confirms $10 billion investment in Iraq oil fields, solar plant

TotalEnergies confirms $10 billion investment in Iraq oil fields, solar plant

TotalEnergies has confirmed that it will make an initial investment of $10 billion in three Iraqi oil fields and develop a solar energy plant to supply the Basrah regional grid in the south of the country, as part of a $25 billion deal with Iraq's government and QatarEnergy.

Reports emerged on Tuesday that the French energy giant had struck a deal with the Iraqi government to work on the $27 billion energy project, with the state taking a 30% stake.

The Iraqi government originally wanted a 40% stake in the project, which ended up stalling due to a dispute over the terms of the deal. 

The $27 billion Gas Growth Integrated Project (GGIP) agreed on in September 2021 was created to develop Iraq’s natural resources and improve the country’s electricity supply. 

In a statement issued on Wednesday, TotalEnergies confirmed that CEO Patrick Pouyanné had met with Iraqi Prime Minister Al-Sudani four times to agree on the conditions of the deal.

“The Iraqi Government and TotalEnergies have agreed on a 30% stake for the Basrah Oil Company (BOC) in the GGIP. Furthermore, in agreement with the Iraqi Government, TotalEnergies has invited QatarEnergy to take a 25% stake in the GGIP,” the statement said.

Therefore, TotalEnergies will have