In a historic development, Iraq and French oil major TotalEnergies have finally signed a long-delayed agreement worth $27 billion to construct four projects involving oil, gas, and renewable energy.

The agreement was formally sealed at a ceremony in Baghdad, where TotalEnergies Chairman and CEO, Patrick Pouyanne, and Iraqi Oil Minister, Hayan Abdel-Ghani, signed the deal, marking a significant milestone for both parties involved.

Originally signed in 2021, the agreement faced substantial delays due to disputes among Iraqi politicians. The initial investment of $10 billion was intended for projects in southern Iraq over a span of 25 years. However, progress was hindered by internal conflicts until it was successfully closed in April of this year.

Under the revised terms of the agreement, Iraq agreed to accept a smaller stake in the project, reducing its share to 30%. TotalEnergies, on the other hand, will hold a 45% stake, while QatarEnergy will own the remaining 25%.

One of the key projects included in the agreement is the Gas Growth Integrated Project (GGIP), which aims to enhance Iraq's electricity supply by capturing flared gas from three oilfields for use in power plants. This initiative will contribute to reducing gas waste and provide a more sustainable source of energy for the country.

Additionally, TotalEnergies has committed to developing a solar power plant with a capacity of 1 GW. The plant will supply electricity to the Basrah regional grid, helping to meet the growing energy demands of the region. In a bid to collaborate on this project, TotalEnergies has invited Saudi company ACWA Power to join forces and contribute their expertise.

The signing of this agreement signifies a major step forward for Iraq's energy sector, as it aims to enhance domestic power generation, reduce gas flaring, and promote renewable energy sources. The collaboration with TotalEnergies and QatarEnergy will leverage their technical expertise and investment capabilities to facilitate the successful implementation of these ambitious projects.

The $27 billion agreement represents a significant boost to Iraq's economy and energy infrastructure, bringing much-needed investment and expertise to the country. The partnership between Iraq and TotalEnergies is expected to have a positive impact on the overall development of Iraq's energy sector and contribute to the nation's long-term energy sustainability goals.

With this milestone achieved, Iraq is poised to make substantial progress in its efforts to strengthen its energy capabilities, diversify its energy sources, and provide a more reliable electricity supply to its citizens.