South Korea’s Korea Gas Corporation (Kogas) will develop Iraq’s Akkas gas field alone, following the pull out of its consortium partner on the project earlier in the month.

The state-run gas company was asked by Iraq’s Oil Ministry to continue the gas development project, despite the withdrawal of Kazakhstan’s Kazmunaigas Exploration & Production on 11 May.

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.

Kogas plans to invest about $2.66bn in the Akkas field, which contains some 5.6 trillion cubic feet (cf) of natural gas over a 20-year period. A final contract signing is expected in June, says the filing, although the company could yet bring in another consortium partner.

Kogas and Kazmunaigas agreed to a remuneration fee of $5.5 for each barrel of oil equivalent, as well as a plateau target of 400 million cubic feet a day (cf/d) in Iraq’s third oil and gas field licensing round in October 2010. This will be payable once the field reaches a dry gas production level equal to 25 per cent of the plateau production target, which must be maintained for at least nine years.

However, the signing of the technical service contract for the field has face several delays due to opposition from the provincial authorities in Anbar, who were unhappy with the company’s plans (MEED 15:5:11).