Huge Gas Deals Signed

Further to our reports of major gas contracts being agreed in principal on 20 October for three fields holding 11 trillion cubic feet of gas (4 trillion cubic metres), most of them have now been signed.

Turkish Petroleum Corporation (TPAO),  Kuwait Energy and Kogas won the right to operate Iraq's Mansuriyah gas fields and have committed to producing 320m cubic feet of gas per day (113m cubic metres) for $7 per barrel of oil equivalent. The Mansuriyah fields contain almost 370bcf (130bcm), according to the Oil Ministry.

Turkish Petroleum Corporation (TPAO) and Kuwait Energy will also operate the Siba field, producing 100m cubic feet of gas per day (35m cubic metres) at $7.50 per barrel of oil equivalent.

Abdul-Mahdy al-Ameedi, from the Oil Ministry expects that the contractors will reach 25% of its production target in three years and the full target in six.

The signing of the contract for gas production in the Akkas field, which is split 50-50 between KazMunaiGas and Kogas, has been put back to "clear a misunderstanding," the Oil Ministry said. These companies have agreed to produce 400m standard cubic feet of gas per day (141m cubic metres) at Akkas at a price of $5.50 per barrel of oil equivalent.

However, there could still be political setbacks to these contracts, which might be revealed as the new government takes shape.

(Source: Oil Ministry, Oil Directory, Bloomberg)