Global Arab Network | South Korea: Iraq signs deal with KOGAS for gas field

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South Korea: Iraq signs deal with KOGAS for gas field

Global Arab Network - - Ayman Khalil

Wednesday, 26 October 2011 20:31

http://www.english.globalarabnetwork.com/images/stories/2010/Nov/gas__iraq.jpg

Global Arab Network – Iraq signed a contract with South Korea's KOGAS to develop a gas field in western Anbar province, finally inking a deal that had been repeatedly delayed since it was awarded nearly a year ago.

The contract for the Akkaz field was signed by Deputy Oil Minister Ahmed al-Shamma and KOGAS CEO Choo Kangsoo at the oil ministry in Baghdad.

The contract is for a 20-year period, Shamaa said, and peak production of 400 million cubic feet per day should be reached within six years.

KOGAS will receive $5.50 per barrel, he added.

Akkaz, with estimated gas reserves of 5.6 trillion cubic feet, was discovered in 1992 in Iraq's northwestern region, near the border with Syria, in the western province of Anbar.

The Iraqi government originally awarded the development project in November to a joint bid from Kazakhstan's KazMunaiGas and the Korea Gas Corporation (KOGAS), but the former pulled out in May.

Baghdad then asked KOGAS to develop the field on its own, with an initial contract being inked in June.

Since November, the official signing of the contract has been delayed over disputes between federal and local authorities.

Oil Minister Abdelkarim al-Luaybi said in February that Anbar provincial officials wanted the two companies to be contractually obliged to build housing and improve public services in exchange for the right to develop the gas field.

Oil sales account for the lion's share of government income in Iraq, with the country exporting around 2.2 million bpd. But Iraq is seeking to boost its gas production as well.

Iraq urges India to invest in energy, industry, housing sectors

Iraqi Deputy Prime Minister Hussein al-Shahristani called on a visiting Indian delegation to make much-needed investments in Iraq's energy, industry and housing sectors.

"Shahristani discussed the means for Indian investment and developing the industrial and oil sectors in Iraq with an Indian delegation," according to a statement from his office.

Shahristani's position includes particular responsibility for energy issues.

"Iraq encourages foreign companies to enter the Iraqi markets through investment and rebuilding infrastructure," Shahristani said.

He also called on "Indian companies to invest in low-cost housing, because the country really needs it."

The Indian delegation was made up of 15 companies specialising in sectors including oil, gas, automobiles, agricultural vehicles, housing and health, the statement said.

Iraq currently produces around 2.9 million barrels per day (bpd), with exports of crude accounting for the lion's share of government income, but seeks to be capable of producing 12 million bpd by 2017.

Iraqi National Investment Commission Chairman Sami al-Araji said in August that that new housing was the country's top priority in terms of attracting foreign investment.

Iraq is seeking to build one million new housing units nationwide in the coming years.

Global Arab Network

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