Iraq signs contract with Ukrainian company to develop Akkas gas field

[currenzcraze]

Iraq signs contract with Ukrainian company to develop Akkas gas field

• Amr Salem
•  April 24, 2024
•  514
•  2 min

Workers at the Akkas gas field. Photo: Iraq Oil Report

Baghdad (IraqiNews.com) – The Iraqi Ministry of Oil announced on Wednesday that it had signed a contract with the Ukrainian company Ukrzemresurs to develop the Akkaz gas field in western Iraq.

During his speech in a ceremony held to sign the contract, the Iraqi Minister of Oil, Hayan Abdul-Ghani, stressed the importance of developing the Akkaz gas field in Anbar governorate, according to the Iraqi News Agency (INA).

The Akkas gas field, which has sizable reserves, was being developed by the Korea Gas Corporation (KOGAS), a South Korean public natural gas company, before Ukrzemresurs won the contract.

The Iraqi Oil Minister clarified that Ukraine’s Ukrzemresurs will increase production at the Akkas gas field from 60 million cubic feet per day to 100 million cubic feet per day within one to two years and to 400 million cubic feet of gas in four years.

Member of the Iraqi Parliament’s Oil and Gas Committee, Ali Al-Mashkoor, revealed last August that two firms from Ukraine and Armenia are competing for the Akkas gas field development contract, Zawya News reported.

The Akkas gas field, which was found in 1992, has approximately 5.6 trillion cubic feet of confirmed natural gas deposits.

[currenzcraze]

Lawmaker slams oil ministry for striking a huge deal with a "weak" Ukrainian company

EconomyIraqUkraineOil Ministry

2024-04-24 11:30

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Shafaq News/ A member of the Iraqi Parliament's Oil and Gas Committee on Wednesday raised objections to a contract that awards what he described as a "weak" firm the rights to operate in the Akkas oilfield in the west of the country.

The Ministry of Oil had announced earlier in the day the signing of an agreement with Ukrainian company "Ukrzemresurs" to develop the field, targeting a production capacity of 400 MMCFD (million cubic feet per day). 

Oil Minister Hayan Abdul-Ghani, in a press release, defended the deal that he believes it is promising for the country's overall power producing capacity.

Ali al-Mashkoor, a member of the parliamentary committee, expressed concerns about this deal. "The Ministry of Oil replaced the Korean company KOGAS with Ukrzemresurs, instead of signing with a recognized international firm," Al-Mashkoor told Shafaq News Agency. "This contradicts the directives of Prime Minister Mohammed Shia al-Sudani."

Al-Mashkoor argued that the contract is "a significant waste of Iraq's resources and could lead to the squandering of the country's oil wealth. This is an example of Iraq's never-ending problem with selecting reputable companies for its most critical economic sector."

The committee member called for canceling the contract, citing potential negative consequences for Iraq's oil sector and questioning Ukrzem Resource's competency, which he described as a "weak" company.

"We will work to expose any potential irregularities surrounding this contract," al-Mashkoor concluded. "There are suspicions that some MPs may have pursued this deal for personal interests. We will soon unveil evidence to support these claims."