Iraq and French oil major TotalEnergies on Monday signed a long-delayed $27 billion energy deal that aims to increase oil production and help the country to produce energy with oil, gas and renewables projects, a Reuters report said.

 

Initially signed in 2021, the deal for the Gas Growth Integrated Project (GGIP) has faced delays amid disputes between Iraqi politicians over the terms, but was finally closed in April when Iraq agreed to take a smaller than initially demanded stake in the project of 30 per cent, Reuters said.

 

TotalEnergies will hold the lion’s share with a 45 per cent stake in the project, followed by Iraqi state-owned Basra Oil Company with 30 percent, and QatarEnergy with 25 per cent. 

 

TotalEnergies Chairman and CEO Patrick Pouyanne signed the agreement with Iraqi Oil Minister Hayan Abdel-Ghani at a ceremony in Baghdad, with Pouyanne calling it a "historic day".

 

He said the project would break ground this summer and would see an investment of $10 billion over the next four years.

 

The Gas Growth Integrated Project aims to improve the country's electricity supply, including by recovering flared gas at three oilfields and using the gas to supply power plants, helping to reduce Iraq's import bill.

 

TotalEnergies said it would also develop a 1 GW solar power plant to supply electricity to the Basra regional grid, inviting Saudi company Acwa Power to join the project, Reuters added.