South Korean KOGAS Prepares for Two Gas Field Development Projects in Iraq

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--Last month, Iraq's cabinet approved a deal with Korea Gas Corporation (SEO:036460) (KOGAS) (Seongnam, South Korea) to further develop the Akkas gas field in the western province of Al Anbar. The contract is due to be signed mid-October. KOGAS' stake in the Akkas project grew to 75% after KazMunaiGas (Astana, Khazakstan) backed out of the deal earlier in the year, and now plans to work alongside South Oil Company (Al Basrah, Iraq).

KOGAS, one of the largest liquefied natural gas (LNG) import companies, is active in the Middle Eastern country, according to Industrial Info. Currently, KOGAS is involved in more than $2 billion worth of capital oil and gas production projects in Iraq. The Akkas project is one of two gas field development projects on the books for Iraq in which KOGAS is involved.

Akkas gas field already has a daily production rate of 50 million standard cubic feet, however Iraq is aiming to boost production to 400 million standard cubic feet per day by mid-2016. KOGAS is on board to drill 30 new wells in order to tap into reserves of more than 5 trillion cubic feet, with activity scheduled to commence by the end of the fourth quarter. The South Korean company is also planning to begin construction on a new natural gas processing plant around the same time, with a completion date set for the end of 2014.

KOGAS' other Iraqi natural gas undertaking, the Mansuriyah natural gas field development project, is due to commence next month in Diyala province, just to the northeast of Al Anbar. In association with the Iraqi office of Turkish Petroleum Corporation (Ankara, Turkey) and Kuwait Energy Company (Hawalli, Kuwait), KOGAS plans to bring the Mansuriyah gas field up to 320 million standard cubic feet per day by mid-2014. Iraq has approximately 112 trillion cubic feet of gas reserves and is increasing gas field development to bring gas flaring down. In 2008, an average of 1 billion cubic feet per day was flared due insufficient infrastructure.

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