Economy News – Baghdad
The Parliamentary Oil and Gas Committee has announced a delay in the operational activities of a Ukrainian company in the Akaz Al-Ghazi gas field, adding that the Iraqi government may issue a final warning to retract the project from the company.
According to committee spokesperson Ali Shaddad, “The Akaz Al-Ghazi field is among the most significant gas resources in Iraq, recognized for its high efficiency and gas purity, with an impressive production capacity estimated at five million cubic meters.”
Shaddad elaborated that “the field was originally contracted to a Turkish firm following the previous regime’s fall, but operations were terminated when ISIS activities escalated, leading to a cancellation of the contract.”
In 2024, the Ministry of Oil engaged the Ukrainian company to undertake operations within the field amid external pressures. The company successfully met evaluation standards and provided a financial guarantee of $50 million, ensuring operational commitments. It is also collaborating with the North and Basra Oil Company on this project.
Shaddad indicated that the committee has been informed that the company has undertaken minimal operational visits — with only two reported appearances at the field. The company cited an interruption by unknown armed groups during one visit, a claim that has been contested by the Central Oil Company.
“The Ministry of Oil plans to deliver a final warning to the Ukrainian entity, with the potential to withdraw from the contract should the current lack of progress persist,” Shaddad noted, highlighting that the committee had previously hosted the Minister of Oil to discuss the situation, particularly following social media allegations linking the company to unrelated individuals and questioning its financial viability.
During the committee session, the Minister of Oil emphasized that the documentation from the company is legitimate and robust, actively refuting claims that question its financial capabilities and experience in comparable projects. He urged those making such allegations to furnish official evidence to substantiate their claims.
Shaddad concluded by asserting that Iraq faces challenges with emergent companies securing projects through opaque means, often resulting in delays in executing critical infrastructure developments.
In April 2023, the Ministry of Oil announced the signing of a contract with Ukrainian firm Yokerzm Resources to enhance the Al-Ghazi crutch field, with an operational target of 400 seats per day.
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