Iraq’s Basra Oil Company and TotalEnergies (TE) agreed to a Gas Growth Integrated Project (GGIP) plan worth $10 billion on Wednesday.

The deal entails a 30% cut in the project to Basra Oil Company and a 25% cut to the Qatari firm, Qatar Energy. The remaining 45% goes to the French energy giant.

Four rounds of talks between the Iraqi government's Prime Minister Mohammad Shia Al-Sudani and TE’s CEO Patrick Pouyanne resulted in the final deal.

The deal had been delayed due to disagreements over the terms of another deal which entails projects aimed at improving Iraq’s electricity supplies 

The two parties signed the original deal in 2021 which included investments in oil, gas, and solar production in Iraq. Shortly after the signing, disagreements over the terms of the deal arose.

According to Iraqi officials, Iraq demanded a 40% stake, while TotalEnergies wanted Iraq to have a smaller stake.

It is noteworthy that Iraq has one of the largest hydrocarbon reserves in the world. However, its electricity grid has been exhausted after years of the US-led war on the Iraqi people.

GGIP includes the recovery of flared gas from oil fields to power electricity generation plants which will increase electricity production in the country.

Furthermore, Saudi firm ACWA Power will be joining in on the process to build a one-gigawatt solar farm that will supply electricity to the governorate of Basra.

The plan also entails the construction of a seawater treatment plant that will produce water needed in the oil production processes.

"TotalEnergies welcomes the continuity of the voice of the State of Iraq on this Development & Production Contract, which is a strong and positive signal for foreign investment in the country," the company said.

Read more: Iraq Kurdistan region agree to resume northern oil flow.