Oil Deal between Iraq and Total Energies: Revenue Sharing Shift

Oil Deal between Iraq and Total Energies: Revenue Sharing Shift

Published about 2 months ago at 28 May 2024

The deal between Iraq and Total Energies includes several key points, with the total value amounting to 27 billion dollars. Total Energies holds a 45% share, while Basra Oil Company takes about 30%, and Qatar Energy holds 25%. The planned projects in this deal include a solar power station with a capacity of 1 gigawatt, a gas facility with a capacity of 600 million cubic feet per day, a seawater supply project, and a gas recovery project in three oil fields. The solar power station is expected to begin operations by the end of 2025, while the gas recovery project is anticipated to start in 2027.


This deal represents a significant shift in Iraq's energy sector, relying on a revenue-sharing model that allocates 65% of extraction fees to the Iraqi state and 35% to cover capital and production costs. Notably, Iraq initially requested a 40% share, but a smaller share was agreed upon. This agreement reflects efforts to enhance international cooperation in developing Iraq's energy infrastructure and providing sustainable solutions for the energy sector, contributing to national economic improvement and sustainable development.