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TotalEnergies mega-deal with Iraq hits snag over state participation

Iraq wants to take a 40 percent stake in the $27 billion deal, but finalizing terms could prove difficult before a new government takes shape.
Iraqi Prime Minister Mustafa al-Kadhimi (center) oversees TotalEnergies CEO Patrick Pouyanné (left) signing one of four deals with Iraq's oil and electricity ministries on Sept. 5, 2021. (Source: Prime Minister's Media Office)

BASRA - Six months after TotalEnergies signed a multi-billion-dollar deal with Iraq for a quartet of projects that encompass oil, gas, solar, and a system to provide water for oil field injection, the French energy major is facing delays.

The primary stumbling block to moving forward with the so-called Gas Growth Integrated Project (GGIP)  appears to be the Iraqi government’s insistence that Total accept the newly reconstituted Iraqi National Oil Company (INOC) as a 40 percent partner.

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