01 December, 2010
Oil: Iraq expects to conclude a preliminary contract to develop gas field Akkas within days
Oil Ministry announced Wednesday that the country is expected to conclude a preliminary contract for the development of Akkas gas within days, after a delay because of a disagreement between the Oil Ministry and local authorities on exports.
Kogas won the South Korean and Kazakh Kasmonaegas on 20 October a contract to develop the field in the west of the country near the Syrian border in the third bid in the energy sector conducted by Iraq since the US-led invasion in 2003.
However, the initial signing of the contract - which was initially scheduled for November 14 - was postponed.
Iraqi officials said the delay was to give companies more time to discuss the contract under dispute between the Iraqi government and local officials on the deal.
Deputy Oil Minister Abdul-Karim Allaibi that the ministry will meet with local officials from Anbar province - where the field is located - in the coming days to remove what he called a misunderstanding on the export of gas from the hard up.
He explained that Allaibi Anbar officials understood that the government will issue each Akkas production of gas and this is not true, adding that Iraq has a national network of gas distribution.
He added that Allaibi surplus gas will be exported and not the entire Iraqi surplus Akkas only through Syria, adding that he saw no problem in moving to sign the initial contract "within days". وستتم احالة العقود الاولية الى مجلس الوزراء للموافقة عليها قبل توقيع العقد النهائي. Will be the initial assignment of contracts to the Council of Ministers for approval before signing the final contract.
