Kogas, The Korean Gas Corporation will develop Akkas natural gas field in Iraq. An agreement on this has been signed between KOGAS and Iraq, an Oil ministry spokesman said in Baghdad. With this the delay in the progress of Akkas field which has been pending for seven months has come to an end.
According to the deal, Kogas will have a stake of 75% while the Iraq?s state run North Oil company will hold the rest 25%. In a ceremony close to the media the contract was signed between representatives of KOGAS and Iraq?s Oil ministry officials, reports Bloomberg news agency.
Akkas, situated near the Syrian border of Iraq is the largest of the three oil fields in Iraq. Akkas is expected to produce 400 million standard cubic feet of gas a day at a price of $5.50 per barrel of oil equivalent.
Last October KOGAS together with KazMunaiGas won the tender to develop Akkas Oil Field. Later due to disagreements on contract terms the proceedings have been pending and in May KazMuni Gas has informed the Iraq Oil ministry, their decision to drop out of the deal. Since then Iraq Oil ministry had been asking the KOGAS to develop the field on their own.
Established in 1983, KOGAS is the World?s largest importer of liquefied natural gas (LNG). Most of its imports come from Brunei, Indonesia Malaysia, Oman and Qatar. The Korean Government owns 27% stake of the company.