The presence of TotalEnergies in Iraq creates tensions but Baghdad hopes to negotiate

Speaking on condition of anonymity due to the sensitivity of the subject, a senior Iraqi government official told AFP that TotalEnergies was "unhappy and (had) decided to withdraw from Iraq", without giving further details. details.

Asked by AFP, TotalEnergies declined to comment.

The French company signed an ambitious $2021 billion contract with Iraq in September 10. But the partnership is slow to materialize and the media regularly echo discord.

"We have given ourselves time to continue the dialogue and reach a satisfactory solution (...) about certain contentious points, including the percentage of participation in the project," the ministry spokesman told reporters. Iraqi oil company, Assem Jihad.

He explained to AFP that the Iraqi authorities wanted to participate up to 40% in the investments, against 60% for TotalEnergies.

The French hydrocarbon giant wants to reduce Iraqi participation, according to a source at the Iraqi Oil Ministry.

Regarding the duration of the negotiations, Mr. Jihad acknowledged "a delay that could last several months".

Baghdad is "favorable" to maintaining the agreement, said Mr. Jihad who did not want to comment on information on the departure from Iraq of TotalEnergies employees. "You can ask Total," he told reporters.

The contract covers the construction of petroleum gas recovery, gathering and treatment units on three different fields.

It also provides for the construction of a large-capacity seawater treatment unit, as well as a photovoltaic power plant with a capacity of 1 GW which will supply the network of the Basra region (south).

Tensions come days after Prime Minister Mohamed Chia al-Soudani's first visit to Paris. During this visit, Mr. Soudani had signed a "strategic partnership treaty" with French President Emmanuel Macron.