FINANCIAL NEWS

Iraq to ink Akkas gas field deal this month

04 Jan 2011

(MENAFN) Abdul-Mahdy Al Ameedi, an official at Iraq’s Oil Ministry, said that the country is expected to sign a contract with two foreign companies later this month, in order to develop its Akkas natural-gas field in Al Anbar province, Reuters reported.

According to Al Ameedi, who is Deputy Director General at the ministry’s Petroleum Contracts and Licensing Directorate, revealed that on November 14, the ministry had planned to sign a deal with Korea Gas Corp (Kogas), and Kazakhstan’s state fuel producer, KazMunaiGaz National Co., to produce 400 million standard cubic feet of gas a day at Akkas.

The mentioned field is the largest of three fields for which the government awarded development licenses in October, Al Ameedi added.

After years of conflict and economic sanctions since the 2003 US-led invasion, oil output has hovered at around 2.4 million barrels per day (bpd). Thus Iraq, which sits on the world’s fifth-largest crude reserves, is seeking foreign investment to help it increase production of gas as well as oil, and has awarded 12 licenses for oil developments and three for gas since then, said the official.

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