The agreement to lower the share to 30% was struck after meetings in Baghdad over the past few days. — Bloomberg
BAGHDAD: Iraq says it has agreed to a smaller 30% stake in TotalEnergies' long-delayed US$27bil (RM118.7bil) project, reviving a deal that Baghdad hopes could lure back foreign investment into the battered country, which craves stability.
The deal was signed in 2021 for TotalEnergies to build four oil, gas and renewable energy projects with an initial investment of US$10bil (RM44bil) in southern Iraq over 25 years.
But it has experienced several setbacks amid disputes between Iraqi politicians over terms.
Iraq’s cabinet said in a late Tuesday statement that it had approved the amended 30% share “due to the importance of resolving the issue and proceeding with the signing of related agreements”.
On Tuesday, three sources told Reuters that Iraq has agreed to lower its share to 30% from 40% in the project, which was a key sticking point as TotalEnergies wants a majority stake.
Iraq’s state-owned Basrah Oil will partner in the project instead of the now-abolished Iraq National Oil Company (INOC), the cabinet statement added. The potential for INOC’s involvement had been another stumbling block for the deal.
Iraq, the Organisation of the Petroleum Exporting Countries’ second-largest producer, has been for years plagued by war, corruption and sectarian tensions that have held back its potential.
The agreement to lower the share to 30% was struck after meetings in Baghdad over the past few days, an industry source said. — Reuters
