Iraq Finally Agrees Terms for $27bn TotalEnergies Project

The Iraqi Cabinet has agreed to approve the contract for TotalEnergies' integrated gas development project with some amendments, as follows:

1. The government's participation will be amended from 40 percent to 30 percent in accordance with Cabinet Resolutions (361 and 480 of 2021) to facilitate the signing of related agreements and resolve the issue at hand;
2. The government's share of $1.4 billion will be financed through a loan from the Oil Products Distribution Company.
3. The Basra Oil Company (BOC) will be the government partner instead of the Iraq National Oil Company (INOC), whose establishment was cancelled by a Federal Court decision.
4. The integrated gas development project will be included in the licensing round contracts under the custody of TotalEnergies, provided that the decision includes the Iraqi side's amount.
5. TotalEnergies and the government partner's dues will be paid in-kind based on the Oil Marketing Company's request to sign the export oil sale agreement, which is a necessary condition for activating the contract.
6. The financial allocation for the second part of the Common Seawater Supply Project (CSSP), estimated at about $3 billion, will be prepared in installments for four years ($640 million, $1,570 million, $600 million, and $190 million, respectively). TotalEnergies is responsible for the first part of the joint seawater project, which is estimated at $3 billion.
7. The staff of Basra Oil Company and South Gas Company (SGC) will be seconded to work with TotalEnergies, which will bear the seconded employee's salary and allowances, based on the secondment agreement and production development contract's stipulations and the law.

(Sources: Ministry of Oil, Media Office of the Prime Minister)