Terms Clarified for Iraqi Gas Contracts

Gas companies bidding to develop three Iraqi gas fields (Mansouriya, Akkas, and Siba) have had the terms of the deal clarified.

Reuters reports that the companies will not have to develop export facilities or pipelines, and that the Oil Ministry will pay the companies anyway so long as they have done the required work (even if Iraq fails to establish the national gas pipeline network in time to receive gas from the fields).

Abdul-Mahdy al-Ameedi, director general of the Iraqi Oil Ministry's Petroleum Contracts and Licensing Directorate, said: "There is no article in the contract that states that companies should build export infrastructure. The contractor digs wells then produces gas and builds infrastructure to process and manufacture the natural gas."

He also clarified that the companies will not be responsible for finding customers for the gas.

Click here for more details of the gas fields being auctioned.

(Source: Reuters)

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