Scrutiny Over Akaz Al-Ghazi Gas Field Development Contract
A member of the Parliamentary Oil and Gas Committee, Zainab Juma Al-Mousawi, has expressed serious concerns regarding the contract for the development of the Akaz Al-Ghazi gas field in Anbar Governorate. This contract, signed between the Iraqi Ministry of Oil and the Ukrainian firm Yokraz Risors, has come under fire for its legitimacy and the company’s capability to execute such a significant project.
Al-Mousawi characterized the Ukrainian company as "meager" and "fake," raising alarms about its capacity to develop a field recognized as the second largest gas reserve in the Middle East. She questioned the decision-making process that led to awarding the contract to Yokraz Risors and urged Prime Minister Mohammed Shia Sudani and the Minister of Oil to intervene immediately to prevent what she termed "great financial waste."
This contract was notably initiated after the South Korean company, Cookaz, relinquished its development rights for the gas field to the Ukrainian firm. Al-Mousawi pointed out that, nearly nine months after the signing of the contract, there has been no observable progress in development activities on-site.
Al-Mousawi further indicated that political pressures from various blocs may have influenced the Ministry of Oil’s decision to partner with Yokraz Risors, which she described as a relatively small company lacking a significant operational presence, with only a website to its name and no physical establishment beyond a location in Kiev, Ukraine.
Additionally, Al-Mousawi has called for an investigation by the Federal Integrity Commission into the contractual circumstances surrounding Yokraz Risors and the reasons for the company’s apparent delay in commencing development efforts.
Notably, the Iraqi Ministry of Oil entered into this contract on April 24, 2024, with an objective to enhance gas production to 400 million standard cubic feet per day within a four-year timeline. The Akaz Al-Ghazi field, one of Iraq’s most prolific gas assets, boasts estimated reserves exceeding 5 trillion cubic feet.
This situation underscores the need for vigilance in the oversight of significant oil and gas contracts, particularly in a sector that is crucial to Iraq’s economy.
