TotalEnergies has signed a modified US$27 billion deal with the state of Iraq for four projects aiming to boost oil, gas, and renewables output. An agreement was first struck in 2021, but disputes between Iraqi politicians over the terms meant that the deal was not closed until April this year, with the Iraqi state taking a smaller than originally planned stake of 30%.

TotalEnergies has a 45% stake, while the other 25% is owned by QatarEnergy. TotalEnergies Chairman and CEO Patrick Pouyanne called the day of signing “historic”, and said that ground would be broken in the northern hemisphere summer. Amongst the projects are the Gas Growth Integrated Project, which aims to improve domestic electricity supply (included through reducing flaring at oilfields), a 1 GW solar power plant, and plans to increase oil production at the Ratawi field near Basra from 120,000 barrels per day to 210,000 barrels per day within two years.

While Exxon Mobil, Shell and BP have reduced their operations in Iraq in recent years, TotalEnergies obviously sees potential. Mr Pouyanne said that he hopes “this will be a strong signal to other investors to come to Iraq”.