Local authorities in the Iraqi Anbar governorate have finally given their approval for a consortium led by Korea Gas Corp. (036460.SE), known as Kogas, to develop Akkas gas field in western Iraq after delaying the initial signing for a few weeks, head of the governorate said.
"We welcome South Korean companies to develop Akkas gas field and invest in other projects in Anbar," Jasim Mohammed Hamad, mayor of the western Anbar province, where the field is located, told the local Al Anbar satellite channel late Sunday after meeting with the South Korean ambassador to Baghdad.
The deal was scheduled for signature on Nov. 14 along with two other gas fields, but some concerns from local authorities have prompted contractors Kogas and its partner Kazakhstan's KazMunaiGas EP JSC (RDGZ.KZ) to delay the signing.
Authorities in the western Anbar province had earlier rejected some provisions of the contract with the Kogas-led group particularly the one which deals with exports and sought clarifications from the oil ministry in Baghdad. The local authorities would prefer the produced gas to be consumed locally to produce power to address acute shortages in the governorate.
Newly appointed oil minister Abdul Kareem Luaiby said Saturday: "We have cleared all the misunderstanding and the contract will be signed within days."
The electricity ministry announced Sunday that it had invited international companies to build a 250-megawatt gas-fired power station near Akkas field.
Kogas and KazMunaiGaz were awarded the field, with estimated proven reserves of 5.6 trillion cubic feet at a bidding round held in Baghdad in October.
Deals for two other smaller gas fields, Mansouriya in the eastern Dialya province and Siba in southern Basra governorate, were signed in November.
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