Iraq signs initial deal to develop Akkas gas field

BAGHDAD — An Iraqi official says South Korea's KOGAS has signed a long-delayed deal to develop a promising western gas field, near the Syrian border.

Abdul-Mahdi al-Ameedi, the oil ministry's licensing and contracts chief, said the deal between the Baghdad government and KOGAS was signed Wednesday. It still needs the Cabinet approval before it is enacted.

KOGAS and Kazakhstan's KazMunaiGas EP JSC won the rights to develop the Akkas field during Iraq's third energy bidding round last October. Akkas holds an estimated 5.6 trillion cubic feet of gas.

KazMunaiGas pulled out of the deal last month, forcing KOGAS to double its share in the project.

KOGAS will be paid $5.50 per barrel of oil equivalent.

Iraq sits atop 126.7 trillion cubic feet of undeveloped gas reserves.