Iraq: Clarifications around TotalEnergies agreement

INA - BAGHDAD 

Iraqi Ministry of Oil issued on Monday, a clarification about its agreement with TotalEnergies, while it denied any failure in it.

”At a time when the Ministry of Oil confirms its keenness to implement the contracts that were concluded within the agreement with TotalEnergies, it denies news and press reports that indicated a stumble in the implementation of the agreement,” included a statement by the ministry in an official clarification received by the Iraqi News Agency (INA), noting that ”the Ministry prevents press and media reports from including inaccurate information, and stresses the need for news sources to be impartial and professional,” 

The statement added that this agreement includes (4) major contracts that include paragraphs and obligations, which require some time to complete, and cannot be implemented or resolved in tight timings, including the paragraph of national oil participation by (40%) in it according to the esteemed cabinet decision, which requires consensus between the two sides about the method of participation and financing, as negotiations are now taking place in isolation from the preparations for receiving the contract, which has already begun with a specialized work team consisting of (9) specialists from each side, holding continuous meetings to accomplish the tasks assigned to them.

”The transition period of (6) months begins in early (April 2022) with the management of the Artawi field by the Basra Oil Company, and the financing from TotalEnergies, after the required administrative structure has been prepared by the Basra Oil Company.  As for TotalEnergies,  it prepared an ambitious budget to start development work and increase production,” according to the statement. 

The ministry stressed the existence of coordination and communication between the concerned specialized teams from each side, with its expectations of achieving advanced steps in the Artawi field development project and other projects by the beginning of 2023.

The Ministry of Oil appealed to the media, the press and news sites to be accurate and objective when dealing with information related to the Iraqi oil issue, in the public interest, according to the statement.