Iraq Continues IOC Investment Hunt, But Commitments Remain Out of Reach

20 Oct 2017 Issue: 60 / 42

Iraqi officials are in talks with IOCs on major projects from Nasiriya to the Common Seawater Supply Project (CSSP). The outcomes could be immense, but with ongoing concerns over Iraq’s business climate, results have not been forthcoming.

Instability and undesirable technical service contracts (Tscs) have stunted IOC investment in Iraq in recent years, but the country’s oil ministry appears optimistic that talks with majors including Total and Exxon will start producing results sooner rather than later. It’s a familiar tune, but previous such statements have come to nought. Is this time any different?

In late 2016, Total CEO Patrick Pouyanné called Iraq’s investment climate “problematic” (MEES, 25 November 2016), but Baghdad is doing its best to convince Total that things have changed. Total currently has just one upstream asset in Iraq its 22.5% stake in Halfaya field. Mr. Pouyanné met with Prime Minister Haidar al-‘Abadi in Paris in early October, and a week later, a senior Total executive met with Oil Minister Jabar al-Luaibi to discuss developing the Majnoon field, which operator Shell has decided to relinquish. (CONTINUED - 1062 WORDS)