Iraq approves Akkas gas contract

28 September 2011

Deal with South Korea’s Kogas approved by cabinet

Iraq’s cabinet has approved plans by South Korea’s Kogas to develop the 5.6 trillion-cubic-foot Akkas gas field in western Anbar province on its own. The deal will be signed on 15 October, Reuters news agency reports.

Kogas has pushed ahead with the gas field development deal despite the withdrawal of its consortium partner, Kazakhstan’s KazMunaiGas in May (MEED 29:5:11).

Kogas will now hold a 75 per cent stake in the project, with Iraq’s North Oil Company holding the remaining 25 per cent, according to a company’s filing to the Korea Exchange on 26 May.

The company plans to invest about $2.66bn over a 20-year period and hopes to produce a peak of 400 million cubic feet a day (cf/d) at the field.

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