Key facts
- Iraq is seeking to diversify its oil export routes to Europe.
- Prime Minister Ali al-Zaidi discussed oil exports to Europe with French President Emmanuel Macron and German Chancellor Friedrich Merz.
- TotalEnergies is seeking a 10% stake in a proposed $15 billion Basra-Baniyas pipeline project.
- The pipeline would export Iraqi oil to the Mediterranean coast of Syria.
- The project aims to circumvent the Strait of Hormuz, which has been subject to blockades.
- TotalEnergies also agreed to discuss investments in Iraq's oil sector to boost production.
Iraq is actively seeking to diversify its oil export routes to Europe, aiming to reduce its dependence on the Strait of Hormuz, which has been a point of geopolitical tension. Prime Minister Ali al-Zaidi visited France and Germany this week to discuss these initiatives.
During his visit to Paris on Monday, al-Zaidi met with French President Emmanuel Macron. Discussions included resuming and diversifying Iraq's energy supply routes. A joint statement indicated that French oil company TotalEnergies would invest in Iraq's oil sector to boost production and contribute to energy efficiency and transition. Macron expressed support for al-Zaidi's efforts to limit weapons to the state and secure energy supplies by developing alternative routes to the Strait of Hormuz.
TotalEnergies is reportedly seeking a 10% stake in a consortium planning to build the Basra-Baniyas pipeline, a $15 billion project expected to take at least four years to construct. This pipeline would connect Iraq's southern oilfields to the Mediterranean coast of Syria, providing an alternative export route. The consortium also includes US companies Chevron and TI Capital, along with Qatari-Syrian company UCC Holding. The project aims to circumvent the Strait of Hormuz, especially following recent events that have highlighted its vulnerability.
On Tuesday, al-Zaidi met with German Chancellor Friedrich Merz in Berlin, where they also discussed oil exports to Europe. Agreements announced during al-Zaidi's trip to Paris also included a letter of intent for Harmattan AI to boost Iraq's drone capabilities and a deal between Schneider Electric and T964 to develop data centers in Baghdad.