In May, TotalEnergies finalized an agreement with the Iraqi government to advance the long-delayed $27 billion energy project. The company had originally signed a contract with the Iraqi government in 2021 to develop four oil, gas, and renewable energy projects in southern Iraq over a 25-year period, with an initial investment of $10 billion.
The ambitious project faced setbacks due to disputes among Iraqi politicians regarding the terms of the agreement. However, a recent decision by Iraq to accept a smaller 30% stake in the project has paved the way for a deal that may attract foreign investment back into the nation.
In recent years, major companies such as Exxon Mobil, Shell Plc., and BP Plc. have reduced their operations in Iraq, leading to stagnation in oil production following a period of instability. Nevertheless, Iraq has experienced a phase of relative stability, enhancing the prospects for foreign investors to return.
Total Chief Executive Patrick Pouyanne expressed optimism, stating to Reuters, "The government of Iraq confirmed the whole contract, no modification at all ... so that was for me more than good news,"
Additionally, Iraq may soon resume oil exports through a pipeline to the Turkish port of Ceyhan on the Mediterranean coast. Exports to Turkey's Ceyhan port have yet to restart after Ankara suspended Iraq’s 450,000 barrels per day (bpd) exports via the Iraq-Turkey pipeline on March 25, following an ICC ruling that mandated Turkey to compensate Baghdad $1.5 billion for unauthorized exports by the Kurdistan Regional Government (KRG).
In June, representatives from the Iraqi oil ministry, Kurdistan’s Ministry of Natural Resources, and international oil companies convened in Baghdad to discuss the resumption of production and exports.