The GGIP project will be operated by TotalEnergies, which will hold a 45% share and Iraq’s state-backed Basra Oil Company (BOC) will control the remaining 30% share.
The said project is subject to securing customary regulatory approvals and completion of necessary contractual arrangements.
Qatar Minister of State for Energy Affairs and the president & CEO of QatarEnergy Saad Sherida Al-Kaabi said: “We thank TotalEnergies for inviting us to partner with them and we thank the esteemed Iraqi Government for welcoming us to be part of this partnership.
“We are pleased to be part of this significant development, which is important for Iraq’s energy sector, and we look forward to working with TotalEnergies and Basra Oil Company to progress it to fruition.”
The $27bn project was first signed in September 2021 but it remained entangled in disputes over the terms.
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Earlier this week, the Government of Iraq finalised a deal with TotalEnergies for a 30% stake in the project via the BOC.
According to a Reuters’ report, Iraqi authorities agreed to reduce the stake in the project from 40% to 30% because that was one of the main points of contention.
TotalEnergies will build four oil, gas, and renewable energy projects in Southern Iraq with an initial investment of $10bn under the 25-year GGIP deal.
The deal forms part of Iraq’s efforts to reverse the trend of large oil companies reduce operations in the country in recent years.