TotalEnergies Becomes Iraq’s Key Foreign Player With Closure Of $27bn Megadeal

14 Jul 2023 Issue: 66 / 28 By: Yesar Al-Maleki

After two years Total has finally got its $27bn multi-project Iraq deal over the line. Finalization marks a much-needed vote of confidence that raises Baghdad’s hopes of attracting other majors and reversing its IOC exodus. Navigating Iraq’s bureaucracy to get projects off the ground is now Total’s next challenge.

Iraq and TotalEnergies have finally signed on the dotted line for their long-awaited $27bn megadeal, putting an end to almost two years of protracted negotiations since the multi-project package was initially agreed in September 2021 (MEES, 10 September 2021). Following the 10 July signing ceremony in Baghdad, the French giant has effectively become Iraq’s foremost foreign partner.

Total will hold a 45% controlling stake in the megadeal with state firm Basrah Oil Company (BOC) as a 30% partner and QatarEnergy taking 25% (MEES, 7 April). The megadeal envisions an initial capex outlay of $10bn on four major energy projects, all located in Iraq’s southern Basra province (see map). (CONTINUED - 2187 WORDS)