Negotiations between TotalEnergies and Iraq on a $27 billion energy deal have reached an advanced stage, according to Iraqi Oil Minister Hayan Abdel-Ghani.
TotalEnergies and Iraq in advanced negotiations for an energy agreement
Negotiations for the $27 billion energy deal between TotalEnergies and Iraq have reached an advanced stage, Iraqi Oil Minister Hayan Abdel-Ghani said. Iraqi politicians disagree on the terms of the agreement, but Abdel-Ghani hopes the deal will boost foreign investment in the country. The two parties signed the agreement in 2021, allowing TotalEnergies to build four oil, gas and renewable energy projects in southern Iraq over 25 years with an initial investment of $10 billion.
Disagreements over Iraq’s share of the proposed energy deal with TotalEnergies
However, Iraq’s request for a 40% share in the project is a key stumbling block, while TotalEnergies wants a majority stake. Sources said that this Iraqi demand was a major obstacle to reaching the agreement. When asked if the issue of Iraq’s share in the project had been resolved, Abdel-Ghani said, “This is not the time to discuss the shares and we will announce them when an agreement is reached.”
Iraq pledges to maintain oil production
According to Abdel-Ghani, head of the Iraqi State Oil Reserves Board, Iraq has committed to maintaining its oil production at 220,000 barrels per day, in line with its quota under the OPEC+ agreement. This decision is aimed at supporting the efforts of the group of oil producers to stabilize world market prices.
If necessary, Iraq says it is ready to increase its oil production with the OPEC+ group of producers. This decision comes in a context where oil prices have risen significantly over the last period. This measure is intended to meet the growing demand of the world market and to prevent any possible shortage of oil.
In conclusion, negotiations between TotalEnergies and Iraq for a $27 billion energy deal have reached an advanced stage, although disagreements remain over Iraq’s share in the project. This agreement is crucial to revive foreign investment in the country and to keep oil production at stable levels in line with OPEC+ quotas. In a context of rising oil prices, it is important that Iraq and the producing players work together to meet the growing demand of the global market and prevent any potential oil shortages.
