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.
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