Iraq’s $27bn deal with French energy company TotalEnergies has been stalled due to disputes over the financial terms, and possible risks of being cancelled by the new government, reported Reuters.

The agreement, which was signed in September 2021, was expected to reverse the trend of several oil majors exiting from Iraq.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The deal involves the Ministry of Electricity, and three contracts with the Iraqi Ministry of Oil.

The agreement requires TotalEnergies to invest in four oil, gas, and renewables projects in the southern Basra region, over a period of 25 years.

At the time, the Iraq Oil Ministry did not agree on the financial details of the deal with the government departments.

Since then, the deal had been held up in disputes, reported the news agency, citing three Iraqi oil ministry and industry sources familiar with the negotiations.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Iraqi Oil Ministry is negotiating TotalEnergies’s financing as part of the deal.

The deal is due to receive approval from a new Iraqi Cabinet, which includes new Oil and Finance Ministers, who are not expected to be in place until the end of March 2022.

Denying issues in implementing the deal with the French firm, the Iraq Oil Ministry said that the deal “needs time.”

An Iraqi Oil Ministry spokesperson was cited by Reuters as saying that the deal between TotalEnergies and Iraq would be completed sometime from March onwards.

TotalEnergies was cited by Reuters as saying: “The agreements remain subject to conditions to be met and lifted by both sides.”

The parliament, however, could force the Oil Ministry to scrap the deal or review it, reported Reuters.

The government has repeatedly cut oil production targets as a result of foreign oil firms’ exits from the country, citing poor returns from revenue sharing agreements.