Page 4 - MEOG Week 12 2023

MEOG COMMENTARY MEOG

Talks continue on major

deal as Iraq sticks with

OPEC+ quota

There remains optimism that a deal between Baghdad and
TotalEnergies can be concluded, but the narratives provided differ

IRAQ TALKS between Baghdad and French firm the outstanding points in a delayed deal have
TotalEnergies are yet to find a resolution to reached “advanced stages”.
sticking points that threatened to scupper the “We are close to conclude the contract,”
WHAT: delayed $27bn deal. Comments from the Iraqi Abdulghani said at an energy conference.
The two parties have Oil Minister and TotalEnergies’ CEO cast a dif- In response to a question about whether
been negotiating since ferent spin on the current situation, while Iraq the issue of Iraq’s share in the project has been
September 2021, but the noted its intention to maintain its oil production resolved, Abdulghani said that the time is not
French firm is understood restraint in line with OPEC+ quotas. appropriate to discuss the matter, adding that
to be close to pulling out While both parties have expressed hopes that the announcement of the shares will take place
entirely. an agreement can be reached, the French com- when an agreement is reached.
pany remains concerned about the risk it would Its present form is understood to revolve
WHY: be exposed to in the deal’s current form. around TotalEnergies holding a 60% stake, with
While Baghdad’s The 25-year project, which targets an increase Iraqi state-owned Basra Oil Co. (BOC) taking
insistence on retaining of 125,000 barrels per day (bpd) of oil from the the remainder.
a 40% stake remains Artawi oilfield, 600mn cubic feet (17mn cubic This point was said to have been part of dis-
a key stumbling block, metres) per day of gas, 1,000 MW of solar energy cussions between Iraqi Prime Minister Moham-
TotalEnergies is at least and 5mn bpd of seawater supply, is eventually med al-Sudani and TotalEnergies’ CEO Patrick
willing to continue seen being valued at up to $27bn. Pouyanne earlier this year.
negotiations for the time Various reports emerged in February that These talks followed the signing of a strategic
being. suggested the IOC had pulled its foreign work- partnership between Iraq and France covering
ers out of Iraq as it struggles to reach a resolution anti-corruption, security, renewable energy and
WHAT NEXT: with Baghdad over the terms of the 2021 deal, culture as well as the implementation of the 2021
For Iraq, the deal is vital with the key issue being the Iraqi state’s partici- deal. However, the disagreement about Iraq’s
to its hopes for expanding pation in the associated projects. share in the project was reported to have caused
production of both oil and a rift in the discussions.
gas as well as playing Iraq’s input In February, Ministry of Oil (MoO) spokes-
an important role in The Iraqi Minister of Oil, Hayan Abdulghani, man Assem Jihad said that talks between the
developing renewables. said at the weekend that the talks to resolve parties have been extended to deal with ‘sticking

P4 www. NEWSBASE .com Week 12 22•March•2023