Reuters reports that sources have told it that QatarEnergy, which is owned by the Qatari state, is in talks with TotalEnergies to buy stakes in some of its energy projects in Iraq.
Following the invasion of Iraq, many international oil majors took up deals with the Iraqi Government to develop the massive oil reserves there, but revenue sharing agreements with disappointing returns have led companies like BP, Shell, and ExxonMobil to scale down their activities in Iraq. A large investment from a Gulf nation would, therefore, be a big win for Iraq.
TotalEnergies, which also makes metalworking fluids and food safe lubricants under the Total brand, has a cluster of energy projects worth around $27 billion in Iraq. QatarEnergy is reportedly looking to acquire a 30% stake, which would be consistent with the typical industry practice of sharing risk among a range of partners.
TotalEnergies also agreed a deal with the Iraqi Government in 2021 to develop a number of projects aimed at reducing the countries reliance on Iran to supply it with natural gas. These include gas, solar and water facilities that will be built over 25 years in the south of the country. One facility will treat seawater so that it can be injected into fields to increase production, while an expansion of the Ratawi field will be combined with a network to gather natural gas to fuel power stations. The region around Basra will also gain a large solar farm for renewable electricity production.