BAGHDAD/DUBAI (July 10): Iraq and French oil major TotalEnergies on Monday (July 10) signed a long-delayed US$27 billion (RM126.09 billion) energy deal that aims to increase oil production, and boost the country's capacity to produce power with four oil, gas and renewables projects.

The deal was signed in 2021, with an initial investment of US$10 billion in southern Iraq over 25 years, but it was delayed amid disputes between Iraqi politicians over terms.

TotalEnergies chairman and chief executive officer Patrick Pouyanne signed the agreement with Iraqi Oil Minister Hayan Abdel-Ghani at a ceremony in Baghdad, with Pouyanne hailing it a "historic day".

The deal was closed in April, when Iraq agreed to take a smaller than initially demanded stake in the project of 30%, with TotalEnergies taking a 45% stake and QatarEnergy holding the remaining 25%.

The Gas Growth Integrated Project aims to improve the country's electricity supply, including by recovering flared gas on three oilfields to supply power plants.

TotalEnergies said it would also develop a 1GW solar power plant to supply electricity to the Basrah regional grid, inviting Saudi company ACWA Power to join the project.