Kazakh company to own 37.5 percent in development of Akkas gas field in Iraq

Oil&Gas Materials 27 January 2011 18:47 (UTC +04:00)

Kazakhstan, Astana, Jan.27 / Trend A. Maratov /

KazMunaiGas Exploration Production (KMG EP) will own 37.5 percent in the project to develop the Akkas gas field in Iraq, KMG Chairman Kairgeldy Kabyldin told Trend.

"Our subsidiary KMG EP will own 37.5 percent," Kabyldin said.

KMG EP jointly with the South Korean Korea Gas Corp won a tender to develop the Akkas gas field in Iraq.

According to Kabyldin, 25 percent of the assets will be owned by the Iraqi side, while the remaining 65 percent is equally divided between Kazakhstan and South Korean company.

According to the Iraqi Oil Ministry's information, KMG EP and the Korea Gas Corp (KOGAS) have made an offer on the extraction of 400 million cubic feet of gas per day at a price of $5.5 per barrel in oil equivalent.

The Akkas gas field is located in Anbar province, in the Western part of Iraq. Its gas reserves are estimated at 158 billion cubic meters of gas.

Akkas is the largest of the three gas fields in Iraq that were put up last summer on the tender for development by foreign companies. Total stocks of all three fields put up for sale were estimated by experts at 318 billion cubic meters. Approximately $2.5 billion should be invested in the development of the field.

The auction for the purchase of gas fields was attended by 13 companies, including Norway's Statoil, Russia's TNK-BP, and Italy's ENI.

The decision on the sale of fields is part of a consistent policy of the Iraqi government to overcome the post-war isolation by attracting foreign companies in the gas sector.

Tender to develop three gas fields was previously postponed twice - in August and September 2010, and was held in October 2010.