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Iraq to hold 30% stake in TotalEnergies’ projects

oil gas and fuel storage ta

Some $27 billion worth of projects in Iraq came a step closer to realisation when the Iraqi Government agreed to hold a 30% interest in the projects.

The four projects relate to renewable energy, gas, and oil production, with southern Iraq receiving $10 billion in initial investment. This deal was originally signed back in 2021, but there have been disputes in how to implement it. A major stumbling block has been the Iraqi Government’s insistence on holding a 40% stake. With Qatar Energy also rumoured to be taking part in the consortium, this would have precluded TotalEnergies from holding a majority interest.

The participation of Iraq’s National Oil Company (INOC) was also thought to have been a contentious issue, but TotalEnergies will now partner with the government-backed Basrah Oil Company (BOC) instead. Together with the reduction to a 30% interest, this potentially means the deal could soon be activated. In a statement, the Iraqi Cabinet said that it had agreed to this:

“due to the importance of resolving the issue and proceeding with the signing of related agreements.”

Among the projects is the building of a plant to treat seawater, so it can be injected into wells to increase production, and a large solar power plant near Basra. A network will also be built to gather natural gas for use in power generation.

Here at TrAchem, we’re proud to offer TotalEnergies’ lubricants like Total Preslia alongside the many other brands we stock, so contact our helpful team to learn more.

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