Korea Gas Corp. (Kogas) multibillion-dollar deal to develop one of Iraqs largest gas fields has finally being ratified after Iraqs cabinet approved the project in mid September.
The "final" signing of the deal with Kogas for the Akkas field will take place October 13, Sabah Al Saidi, the deputy head of the ministry's petroleum contracts and licensing directorate, told Dow Jones Newswires.
The initial deal with Iraq's oil ministry had been agreed on June 1 but it required cabinet’s approval for it to be properly ratified.
Kogas will submit a field development plan within six months of the contract taking effect, subject to Iraq's approval, Yoo Jeong-don, the general manager of Kogas's Iraq project group, said.
Kogas may start developing the field around August or September next year, after which the company may look for new partners to the project.
Kazakhstan's state gas company KazMunaiGas EP JSC withdrew from the project earlier this year. Kogas then doubled its stake in the Akkas venture to 75 per cent, taking over KazMunaiGas's stake. Iraq's state-run North Oil Company holds the remaining 25 per cent.