Iraq has agreed to a smaller 30% stake in TotalEnergies long-delayed $27 billion project, reviving a deal that Baghdad hopes could revive foreign investment into the battered economy, Reuters reported.
The deal was signed in 2021 for TotalEnergies to build four oil, gas and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years.
But it has experienced several setbacks amid disputes between Iraqi politicians over terms.
Iraq’s state-owned Basrah Oil (BOC) will partner in the project, instead of the now-abolished Iraq’s National Oil company (INOC), the cabinet statement noted.
The potential for INOC’s involvement had been another stumbling block for the deal.
Iraq, OPEC’s second largest producer, has been for years plagued by war, corruption and sectarian tensions that have held back its potential.
QatarEnergy will also take part in the consortium and will have a share in the project, sources with direct knowledge of the matter said.
Iraq’s oil production capacity has remained at around 5 million barrels per day in recent years. Yet at one time there had been hopes of rivalling top producer Saudi Arabia with its output of 12 million bpd, more than a tenth of global demand.