Page 4 - MEOG Week 06 2023

MEOG COMMENTARY MEOG

QatarEnergy seen joining the

fold as Iraqi gas talks continue

The Qatari firm’s potential entry comes as talks
with TotalEnergies have become increasingly tense

IRAQ QATARENERGY appears set to continue its deal with QatarEnergy be agreed.
international upstream expansion, with the Abdul Karim, who previously held the same
head of a state-owned Iraqi firm saying the position at the state-owned Iraqi Drilling Co.
WHAT: company would join a major project alongside (IDC), said: “Qatar is one of the promising and
QatarEnergy recently TotalEnergies. The comments follow the Qatari developed countries in this regard … we deter-
joined the French company’s entry into the Lebanese offshore a mine our percentage as an Iraqi country, and the
company in a project to few days earlier, again with TotalEnergies, while rest is for Total[Energies] and QatarEnergy.”
explore for gas offshore negotiations between Baghdad and the French He added: “I don’t expect more than 20-25%,
Lebanon. firm have become tense amid a stand-off over the [but] they are talking about 30%. The important
multi-billion-dollar project. thing for us is to set our share … Iraq is talking
WHY: TotalEnergies denied reports by Iraq Oil about 40%.”
Tensions have heightened Report that its foreign staff had been withdrawn The Qatari firm broadly specialises in off-
between Baghdad and from Iraq, and though there appears to have shore gas production and liquefaction, which
TotalEnergies over the been little credibility to the rumours, the reports have enriched the tiny peninsular nation. Nei-
Iraqi government’s stake highlight the rift between the two parties that ther QatarEnergy nor TotalEnergies have yet
in a potential $27bn have been negotiating terms to allow the project commented on the reports. Middle East Oil &
project that they have to proceed since mid-2021. Gas (MEOG) was told this week by several Iraq
been working on since analysts that while reducing the French firm’s
2021. Basra buy-in exposure to risk in the country may be seen as
Speaking to Reuters on February 1, Bassem a means to expedite the deal, issues around the
WHAT NEXT: Abdul Karim, director-general of the Basra Oil ownership structure are likely to persist.
Ultimately, Baghdad Co., said that he anticipated that the state-owned
needs the project to go Qatari company would acquire a minority share- Total recall
ahead and may find itself holding in a broad project, which is expected to Various reports emerged over the past week that
on the back foot as it require an initial investment of around $10bn. the IOC had pulled its foreign out of Iraq as it
seeks slow the tide of The 25-year project, which targets an increase struggles to reach a resolution with Baghdad
international companies of 125,000 barrels per day of oil from the Artawi over the terms of the 2021 deal. The withdrawal
leaving the country. oilfield, 600mn cubic feet (17mn cubic metres) was first reported by Iraq Oil Report, with Iraqi
per day of gas, 1,000 MW of solar energy and MP Mustafa Jabbar Sanad writing on Twitter
5mn bpd of seawater supply, is eventually seen that staff had been asked to leave the country
being valued at up to $27bn. in order to ‘obstruct’ negotiations, with local
The French super-major had been expected employees asked to work from home.
to hold a 60% stake in the project, with BOC tak- However, while TotalEnergies remained
ing on the remainder; however, this share looks silent on the rumours between January 30 and
likely to be reduced to around 35-40%, should a February 2, it said a day later that its staff had

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