By John Lee.
The Korean Gas Corporation (KOGAS) said on Wednesday that an attack on its operations at the Akkas gas field in Anbar will not delay its plans to start commercial production in September 2015.
A spokesman for the state-run company told Platts:
"There was no major damage to the facilities at the field, and there will be no delay to the original plans ... We will take measures to protect gas fields in Iraq from attacks.
"There were no South Korean casualties. Kogas has dispatched no staff because the Akkas project has not started yet."
On Monday, two local contractors were killed and another was kidnapped during the attack by a group of 20 gunmen in the al-Ibrahimi area, 460 kilometers west of Baghdad, where subcontractor Baider al-Arab has been building a power plant.
The Akkas field, which holds an estimated 5.6 trillion cubic feet of gas, and is the first non-associated gas field to be developed in Iraq, is due to start commercial production in September 2015. "Kogas plans to produce up to 400,000 Mcf/day," the company official said.
Along with Kazakhstan’s KazMunaiGas, KOGAS won the rights to develop the Akkas field during Iraq’s third energy bidding round in October 2010, but KazMunaiGas pulled out of the deal months later, forcing KOGAS to double its share in the project.
The contract stipulates a production plateau of 400,000 Mcf/day for a remuneration fee of $5.50/barrel of oil equivalent, with the plateau output to be maintained for 13 years.
(Sources: Platts, Reuters, Iraq Oil Report)