Parliamentary Oil and Gas Committee Addresses Delays in Akaz Al-Ghazi Field Operations
The Parliamentary Oil and Gas Committee has reported delays in the operations of the Ukrainian company engaged in the development of the Akaz Al-Ghazi gas field. Due to these setbacks, the Iraqi government is contemplating the withdrawal of the company’s contract.
The Akaz Al-Ghazi field is recognized as one of Iraq’s key gas fields, noted for its high efficiency and significant purification capabilities, with a production capacity estimated at five million cubic meters per day.
Following the fall of the previous regime, the field was initially awarded to a Turkish firm; however, operations were halted following the rise of ISIS, resulting in a cancellation of the agreement. Subsequently, in 2024, the Ministry of Oil contracted the Ukrainian company to oversee operations, despite facing external pressures. The company was evaluated positively and provided a financial guarantee of $50 million to ensure operational compliance. Additionally, it collaborates with the North and Basra oil companies in managing the field.
Committee member Shaddad emphasized that the ministry has received reports pertaining to the company’s operational delays. So far, two official warnings have been issued, with the company allegedly visiting the field only twice. During one visit, it claimed that access was obstructed by unidentified armed groups, a statement that was refuted by the Central Oil Company.
The Ministry of Oil is prepared to send a further warning to the Ukrainian firm and may consider contract cancellation if current conditions persist. The committee hosted the Minister of Oil to discuss the company’s status, especially against the backdrop of circulating concerns regarding the firm’s financial stability and operational credibility.
During his testimony, the Minister confirmed the legitimacy of the company’s official documents and attested to its financial strength and relevant experience in similar projects. He encouraged those spreading skepticism to present tangible evidence to support their claims.
Shaddad concluded by remarking on Iraq’s ongoing challenges with emergent companies procuring contracts through opaque channels, which adversely affects the timely execution of essential projects within the country.
In April 2023, the Iraqi Ministry of Oil had announced the signing of a contract with the Ukrainian enterprise "Yokraz Raisors" to develop the Gazezer field, targeting output levels of 400 million cubic feet per day.
Minister Hayyan Abdel-Ghani emphasized the strategic importance of advancing the Akaz Al-Ghazi field located in Anbar Governorate, aiming to enhance local production by an additional 400,000 million standard cubic feet daily, sufficient to supply power generation stations with new volumes of natural gas.
As Iraq continues to grapple with its dependence on gas imports from Iran, the Akaz field remains underproductive, hindering the operation of power plants nationwide. Furthermore, the upcoming deadline of March 7 poses a crucial test for the current U.S. administration concerning its strategy on Iraq’s energy independence, particularly regarding sanctions that affect imports from Iranian energy resources.
