KazMunaiGas has informed Iraq's Ministry of Oil that is is withdrawing from negotiations on the Akkas gas field in Anbar province.
"Unfortunately, the talks have failed to resolve all issues which emerged at a late stage", the company said in a statement, "and it has not been possible to develop a consensus document that would fully meet the interests of all parties".
Together with the Korea Gas Corporation (KOGAS), they won a tender for development of the field in October of last year, but signing of the contract was delayed twice due to disagreements between provincial officials and the oil ministry over contract terms.
Abdul-Mahdy al-Ameedi, director of the Iraqi oil ministry's contracts and licensing directorate, told Reuters the ministry had already talked with KOGAS over whether it could undertake the development of Akkas alone, but would ask the company officially in the coming days.
"They are thinking about it and need to discuss it internally," said Ameedi.
The company went on to stress that it still believes Iraq to be an attractive area for investment.
(Sources: KazMunaiGas, Reuters)