Iran facing obstacles to gas field development in Iraq’s KRG (exclusive)

Business Materials 22 February 2016 19:53 (UTC +04:00)

Baku, Azerbaijan, Feb. 22

By Emil Ilgar, Mehdi Sepahvand - Trend:

Iran's North Drilling Company (NDCO) is facing financial problems in development of a gas field in Kurdistan Regional Government (KRG) in the northern Iraq, according to Fatemeh Yazdani, head of the company's marketing department.

"We now have a contract with KRG to drill at deeper gas layers," she told Trend Feb. 22.

"The customer of the gas is Turkey," she said. "A contract has been signed with Turkey on gas export."

However, she added, the future of production is not clear yet.

"The problem is now lack of enough liquidity. The KRG says they will pay us in two years. We are looking for a trade partner to enter the project together. Some $5 to $6 million is needed for each well," she explained.