Iraq has defended its decision to award Akkas gas field project to Ukraine’s Ukrezemresurs Company following claims that the firm is weak.

In a weekend statement, the Oil Ministry said documents supplied by the company were authorised by Iraq’s embassy in Kiev and Ukraine’s embassy in Baghdad and that the firm has also provided a $50-million bank guarantee.

“There has been continuous criticism against the Oil Ministry’s project and its plans to expand oil and gas output and slash imports of petroleum products,” it said.

The Ukrainian company was awarded the development contract in April 2024.

Iraqi Oil Minister Hayan Abdel Ghani said after signing the deal that the project would add 100 million cubic feet per day (mcf/d) in phase 1 and 400 mcf/d when phase 2 is completed after four years. The Akkas gas field was abandoned by Korea Gas Corp South nearly eight years ago for security reasons. 

Read more: Ukrainian firm wins major Iraq gas deal

(Writing by Nadim Kawach; Editing by Anoop Menon)


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