Total Operations in Iraq

= History =

Total S.A. began its work in Iraq as part of the Iraq Petroleum Company in the 1920s when it discovered the Kirkuk field, followed by further developments at the Buzurgan and Abu Ghirab fields in the 1970s. .

Under Saddam Hussein’s regime in the 1990s, Total signed agreements to develop the Majnoon and Nahr Bin Omar fields in the case of the country being freed from sanctions. However after Hussein’s fall in 2003, the new administration announced that they would not recognise deals signed under the dictator. . In 2007, it was reported that Total signed an agreement together with Chevron that would lead to the two companies exploring and developing hydrocarbons from the Majnoon field once the country had put an oil law into place.

However as of December 2012 the company's position in the country remained uncertain following the deals it signed in the summer of that year directly with the semi-autonomous Kurdistan Regional Government (KRG).

= Activities and Contracts =

Halfaya
In 2009 Total was part of the consortium that won the contract to develop the Halfaya oil field, with Total holding an 18.75% stake in the project, CNPC 37.5%, Petronas 18.75 % and the Iraqi state-run South Oil Company holding the remaining 25% stake. . The contract included a remuneration fee of $1.40 per barrel and the payment of a non-recoverable signature bonus of $150 million The consortium has pledged to boost output at Halfaya to 535,000 barrels per day (bpd) from the 2010 level of 3,100 bpd

Harir and Safen (Kurdistan)
In July 2012 Total purchased Kurdish assets from US-based Marathon Oil Corporation, acquiring a 35% stake in two blocks, at Harir and Safen and becoming operator of one license.

Total's Chief Executive Christophe de Margerie had signalled earlier that year that the company would consider investments in Kurdistan given the more attractive fiscal conditions than in the south. A Paris-based industry analyst quoted by Reuters said that the challenge for Total in these blocks would be the transportation of the product, as Baghdad could block the use of its pipelines to the south.

The UK's Financial Times reported that Hussain al-Shahristani, Iraq’s deputy prime minister for energy, presented Total with an ultimatum to roll back the deal with the KRG or give up its interests controlled by the federal government (the Halfaya field). However these reports were not confirmed and later that year De Margerie described as "unclear" whether the central government would like Total to quit operations at Halfaya.

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