ARKANSAS, Sept 25 (Future Headlines)- Iraq, a nation rich in energy resources, is poised for a significant shift in its gas sector. The termination of the contract with Korea Gas Corporation (KOGAS) to develop the Akkas gas field marks a pivotal moment in Iraq’s pursuit of energy independence and export potential. Here, we delve into the details of this strategic move and its broader implications.
A senior official in the Iraqi Ministry of Oil recently revealed a groundbreaking decision. Baghdad is preparing to end its contract with KOGAS, a South Korean company, for the development of the Akkas gas field, situated west of Ramadi. Instead, Iraq intends to enter into a new contract with a Ukrainian company for the field’s development. The primary goal of this strategic shift is to accelerate the development of the Akkas gas field, boosting its production capacity to a significant 400 million cubic feet per day. This move underscores Iraq’s determination to harness its vast natural gas reserves for domestic consumption and, eventually, export.
The history of the Akkas gas field’s development dates back to 2011, when Iraq signed a contract with KOGAS for its development. However, progress was impeded for over a decade, prompting the Iraqi government to reassess the situation and take decisive action. In a significant decision, the Iraqi cabinet in March chose to repudiate the contract with KOGAS, which was the operator of the Akkas gas field. This move was made with the clear objective of expediting the strategic investment project for Iraq’s energy sector.
The Akkas gas field, discovered in 1992, is one of Iraq’s most substantial gas reserves. It commenced production in 1993 and boasts proven reserves of 5.6 trillion cubic feet, as reported by Business Korea. This vast resource represents a pivotal asset in Iraq’s energy portfolio. Iraq’s Prime Minister, Mohammed Shia Al-Sudani, has articulated an ambitious vision for the nation’s gas sector. During his participation in the Middle East Global Summit, Al-Sudani affirmed the government’s plan to transform Iraq into a gas-exporting country. This assertion underscores the nation’s commitment to harnessing its gas potential and leveraging it on the international stage.
The Prime Minister highlighted the successful completion of vital projects in Iraq’s gas sector. These projects form the foundation upon which Iraq can build its gas export capacity in the future. The focus on enhancing the domestic gas sector’s infrastructure and production capabilities aligns with Iraq’s broader energy strategy. Iraq’s decision to reevaluate and terminate the contract with KOGAS for the Akkas gas field signifies a determined step towards energy independence. It reflects the nation’s desire to take control of its valuable energy resources and optimize their utilization.
Additionally, the aspiration to become a gas-exporting country is indicative of Iraq’s emerging role on the global energy stage. With abundant gas reserves and a strategic geographical location, Iraq has the potential to play a significant role in the international energy market. As the nation harnesses its vast gas resources, it not only secures energy independence but also unlocks opportunities for economic growth and international influence.
Writing by Moe Khaled; Editing by Sarah White