Cabinet approves Exit of Kogas from Akkas Gas Field

By John Lee.

The Iraqi Cabinet has approved the recommendation of the Ministerial Energy Council regarding a settlement agreement with the South Korean company Kogas, the operator of the Akkas gas field.

The agreement includes a payment of USD 49 million in crude oil, to be made by the State Oil Marketing Organization (SOMO).

According to a statement from the Media Office of the Prime Minister, Kogas will transfer its contractual rights and obligations to a qualified global company or consortium of companies, in accordance with Ministry of Oil standards.

The contract will remain in force for one year after signing, and Kogas will provide technical support to the project without any other financial or contractual obligations.

The agreement also allows for the termination of the contract after the end of the one-year period without obtaining an alternative operator.

Rights to the field were originally awarded to a consortium of Kogas and KazMunaiGas (KMG), but KMG pulled out, leaving Kogas as sole investor and operator on new contract terms.

In 2014 it was reported that Kogas was planning to sell its interest in the field.  In 2021 it was rumoured that Saudi Arabia's Delta Oil Company was interested in buying a stake.

(Source: Media Office of the Prime Minister)

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