French oil major TotalEnergies has confirmed it has reached an agreement with the Iraqi government on a long-delayed $27 billion (€24.6 billion) energy project, reviving a deal that aims to bring back foreign investment into the country.
The deal was signed in 2021 for TotalEnergies to build four oil, gas, and renewables projects with an initial investment of $10 billion (€9.1 billion) in southern Iraq over 25 years.
However, the deal has been held up by disputes over the conditions of the contract.
The Iraqi government has agreed to take a smaller stake in the project of 30%. TotalEnergies will then own a 45% stake and QatarEnergy will hold the remaining 25%.
TotalEnergies comments that the deal reached with the Iraqi government ‘is a strong and positive signal for foreign investment in the country.’
The Gas Growth Integrated Project aims to improve the country’s electricity supply, including by recovering flared gas on three oil fields to supply power generation plants.
TotalEnergies will also develop a 1 GW solar power plant to supply electricity to the Basrah regional grid, inviting Saudi company ACWA Power to join the project.
