KMG EP, KOGAS receive rights to develop one of largest gas fields in Iraq

Oil&Gas Materials 21 October 2010 09:59 (UTC +04:00)

Azerbaijan, Baku, Oct.21 / Trend, S.Suleymanov /

JSC KazMunaiGas Exploration Production ("the Company" or "KMG EP") announces that in partnership with Korea Gas Corporation (KOGAS) it has been awarded the rights to develop the Akkas gas field in the Republic of Iraq in the Third Licensing Round organized by Petroleum Contracts & Licensing Directorate of the Iraqi Ministry of Oil, the company said.

"KMG EP actively participates in development of the oil and gas sector in Kazakhstan both by operating our own assets and by going into partnerships with other companies. At the same time we keep looking for attractive projects abroad. Iraq is one of the priority regions for us and we are happy to enter into a mutually beneficial cooperation with the Government of Iraq," KMG EP Chief Executive Officer Kenzhebek Ibrashev said.  

The terms of the proposed deal are $5.5/boe Remuneration Fee Bid and 400 MMSCFD Plateau Production Target, the company said.

In accordance with the conditions of the Third Licensing Round, the State Company owned by Iraqi Government will hold 25% equity share in the final consortium with the remainder equally split between KMG EP and KOGAS (37.5%/37.5%).

Consortium members intend to conduct negotiations with the Government of the Republic of Iraq and sign the Akkas field development contract within the next few months. The Akkas gas field is located in Anbar province, in the Western part of Iraq near the Syrian border. The Oil Ministry of Iraq estimates its gas reserves at 5.6 TSCF.