FINANCIAL NEWS

Iraq to sign agreements for gas fields development

16 Nov 2010

(MENAFN) Head of Iraq’s oil ministry’s licensing and contracting office, Abdul-Mahdy Al-Ameedi, announced that it has signed three agreements with foreign companies for the development of Iraq’s natural gas fields, Mansuriyah and Siba, Reuters reported.

The Mansuriyah agreement, which aims to produce 320 million standard cubic feet per day, and a remuneration fee of $7 per barrel of oil equivalent, was signed with South Korean group Kogas, Kuwait Energy Company, and Turkey’s state-owned TPAO, Al Ameedi said.

As for the Siba deal, which has a proposed plateau production target of 100 million cubic feet per day and a remuneration fee of $7.50 per barrel of oil equivalent, was signed with Kuwait Energy and TPAO, he stated.

TPAO has said the two partners expected to invest $1 billion in the field.

According to Al Ameedi, after the initial signing of the Mansuriyah and Siba contracts, they will be sent to the cabinet for final approval, after which the contracts will finally be signed with the companies.

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