TotalEnergies logos are seen at a fuel station in Nice
TotalEnergies logos are seen at a fuel station in Nice, France, October 10, 2022. Reuters

Baghdad has reached an agreement to hold a 30% stake in TotalEnergies long-delayed $27 billion Iraq project, two sources told Reuters on Tuesday.

The deal was signed in 2021 for TotalEnergies to build four oil, gas and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years.

But it has experienced several setbacks amid disputes between Iraqi politicians over terms.

Iraq's demand for a 40% share in the project was a key sticking point as TotalEnergies wants a majority stake.

The agreement to lower the share to 30% was struck after meetings in Baghdad over the past few days, an industry source said.

TotalEnergies did not immediately respond to a request for comment.

"The deal should be activated within days," a senior Iraqi oil ministry official said.