Reuters reports that Iraq signed the final contracts on Sunday to develop its Siba and Mansuriyah gas fields in deals involving Turkish, Kuwaiti and South Korean companies that will help diversify the country's fossil fuel production.
The Korean Gas Corporation [KOGAS] signed the deal for the Akkas gas field earlier in the week.
"This is a new beginning for the Iraqi energy industry as it is the first time we are developing Iraqi gas fields. We are seeking to meet the needs of our power stations and to make Iraq one of the leading exporters of gas in the world," Oil Minister Abdul-Kareem Luaibi [Elaibi] said at the signing ceremony in Baghdad.
- Akkas, near the Syrian border, is the largest of the three fields at 158bn cubic metres, and it went initially to a joint South Korean-Kazakh bid from the Korean Gas Corporation [KOGAS] and Kazakhstan company KazMunaiGas. KazMunaiGas later pulled out of the project, and KOGAS took over its stake. It will produce 400 million standard cubic feet of gas a day at a price of $5.50 per barrel of oil equivalent.
- The Mansuriyah field in the volatile Diyala province in central Iraq, which stretches east to the Iranian border, has been won by Korean Gas Corporation [KOGAS], Turkey’s TPAO and Kuwait Energy. It holds around 127bn cubic metres of gas. They committed to produce 320 million standard cubic feet of gas a day for $7 per barrel of oil equivalent produced, the maximum the government would agree to pay.
- Siba, on the Kuwaiti border south of Basra, is by far the smallest of the three fields at only 2.9bn cubic metres. Kuwait Energy and TPAO won the bidding here, agreeing to produce 100 million standard cubic feet of gas a day at a price of $7.50 per barrel of oil equivalent. TPAO has said the partners expect to invest $1 billion in the Siba field.
(Sources: Reuters, Bloomberg)