Qatar is in negotiations to take a stake in TotalEnergies' giant $27 billion energy project in Iraq, three sources have told Reuters.

QatarEnergy is looking to acquire a stake of around 30% in the project, according to one source.

Two sources said that QatarEnergy and TotalEnergies had discussed taking a stake in the project, and that while an agreement had not yet been reached, optimism was nonetheless high.

Energy companies rarely own 100% of projects, preferring to form partnerships to reduce risk.

TotalEnergies and Baghdad signed a 2021 agreement to build four giant solar, gas, electricity and water projects in southern Iraq over a 25-year period.

The agreement, which will require an initial investment of $10 billion, followed a visit by French President Emmanuel Macron in September of the same year.

Since then, however, the project has made little headway, despite the hopes it raised for a return of energy groups to Iraq.

The terms of the agreement, which have not been made public, have raised concerns among Iraqi political leaders, sources told Reuters last February.

QatarEnergy and the Qatari government communications office did not immediately respond to a request for comment.

TotalEnergies did not confirm any agreement with Qatar to Reuters.

A representative of the Iraqi Oil Ministry said he was not aware of QatarEnergy's intentions in the TotalEnergies project.

Iraqi Prime Minister Mohammed al-Soudani will visit Paris on Thursday and meet Emmanuel Macron, according to the Elysée Palace.

One of the sources said that Mohammed al-Soudani will also meet with TotalEnergies CEO Patrick Pouyanné to try to move the project forward.

An investment by a Gulf country in the TotalEnergies project would be a major victory for Mohammed al-Soudani, who took office last October after more than a year of political turmoil in the country.

This giant project is expected to boost the Iraqi economy and reduce the country's dependence on Iranian gas. (Reported by Hadeel Al Sayegh and Maha El Dahan in Dubai, Ron Bousso in London, Ahmad Rasheed in Baghdad, Andrew Mills in Doha and America Hernandez in Paris; Blandine Hénault for the French version, edited by Kate Entringer)