Cleary Gottlieb facilitates USD27B gas growth deal in Iraq
International law firm Cleary Gottlieb served as counsel to the Ministry of Oil of the Republic of Iraq and Basra Oil Company (BOC) in a landmark acquisition of a 30% interest in the Gas Growth Integrated Project from TotalEnergies, a major French multinational energy company. The agreements for this transaction were signed in Baghdad on July 10, 2023, with the completion expected by the end of July.
The Gas Growth Integrated Project is a milestone project for Iraq. The four-part project involves a reported an estimated total investment of USD27 billion over its 30-year lifespan. The project is a major step toward achieving Iraq’s energy self-sufficiency goals and meeting its climate objectives.
Originally signed in 2021, in a transaction where Cleary Gottlieb also represented the Iraqi parties, the project involves constructing facilities to gather and process approximately 300 million standard cubic feet per day of associated natural gas, which is currently flared (with a possible second phase to increase to 600 million standard cubic feet per day). Additionally, the project includes the development of a significant seawater treatment facility and a 1GW solar power plant. All these facilities will be funded by the development of the Ratawi oil field, which will be Iraq’s first oil development with zero routine gas flaring and will have targeted production of 210,000 barrels per day.
Previously, TotalEnergies held a 100% interest in the project. As per the new agreements, TotalEnergies will transfer a 30% interest to BOC, and it has also expressed an intention to transfer a 25% interest to QatarEnergy. Following these transfers, TotalEnergies will retain a 45% interest in the project and continue to operate it, while retaining full ownership of the solar facility.
The Cleary team involved in the project included senior counsel Andrew Bernstein (pictured left), partner Lynn Ammar (pictured right) working alongside associates Raghib Masrur and Misthura Otubu.
