TotalEnergies, Iraq agree on delayed $10bln project

TotalEnergies, Iraq agree on delayed $10bln project

French energy giant TotalEnergies announced Wednesday an agreement with Iraq on a long-delayed $10 billion project to improve the country's rundown electricity grid after resolving disputes over the terms of the deal.

The contract -- which includes investments in oil, gas and solar production -- was signed in September 2021 but a new government took office in Iraq last year and its demands did not please TotalEnergies.

Baghdad sought a 40-percent stake in the Gas Growth Integrated Project (GGIP), but Iraqi officials said in February that TotalEnergies wanted Iraq to have a smaller stake.

Iraq's cabinet said in a statement late Tuesday that it had accepted to reduce its demands to 30 percent "due to the importance of resolving the issue".

TotalEnergies confirmed Wednesday that Iraq's Basra Oil Company will get the 30-percent stake while a Qatari firm -- QatarEnergy -- will get 25 percent and the French firm will own 45 percent.

"TotalEnergies welcomes the continuity of the voice of the State of Iraq on this Development & Production Contract, which is a strong and positive signal for foreign investment in the country," the company said.

The agreement follows four rounds of talks in recent months between TotalEnergies chief executive Patrick Pouyanne and Iraqi Prime