FINANCIAL NEWS

Iraq, S Korea’s KOGAS sign gas contract

14 Oct 2011

(MENAFN) Iraq’s oil ministry’s licensing and contracts chief, Abdul-Mahdi al-Ameedi, said that in order to meet growing power demand, the ministry inked a deal with KOGAS, the South Korean oil firm, to develop the Akkas gas field, reported AP.

Al-Ameedi added that the South Korean firm won the rights to develop the field last October during Iraq’s third energy bidding round, furthermore, the deal would run for twenty years and the company would be paid USD5.50 per barrel of oil equivalent.

He also said that the gas extracted from the field, located near the Syrian border, would be used for local needs, especially for power plants and the petrochemical industry, whereas the extra quantities would be exported.

It is worth noting that since 2008, Iraq signed 15 oil and gas deals with international energy firms.

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