Iraq News Now

Shafaq News/ The Iraqi government is to issue a final notice toterminate the contract of the Ukrainian company operating the Akkas gas field,Iraq's parliamentary oil and gas committee announced on Friday.

The Committee Spokesperson, Ali Shaddad, told Shafaq News that theUkrainian company had visited the site only twice and claimed it was blocked byunidentified armed groups during one of the visits—a claim denied by MidlandOil Company.

The oil committee recently questioned the oil minister over thecompany's background after social media posts linked it to a beauty salon ownerand raised doubts about its financial capacity. Shaddad further indicated thatIraq is increasingly facing a troubling trend of newly established companiessecuring major contracts through opaque processes, leading to delays in vitalinfrastructure projects.

However, the minister confirmed that the company’s official documentsare valid and that it has the necessary financial resources and technicalexpertise for such projects, calling on those spreading the allegations toprovide formal evidence.

In 2024, Iraq’s Oil Ministry signed a contract with a Ukrainian companyto operate the field amid external pressure, Shaddad said, adding that thecompany provided a $50 million financial guarantee and is working jointly withNorth Oil Company and Basra Oil Company.

Highlighting its strategic importance, Shaddad described the field asone of Iraq’s most vital assets, thanks to its high-quality, pure gas and aproduction capacity of five million cubic meters. The field was originallyawarded to a Turkish company after the fall of the former regime, but thecontract was later canceled when the company withdrew following the ISISincursion.

Earlier, Oil Minister, Hayan Abdul Ghani, said the project aimed tosupply additional natural gas to power stations across the country.

Despite Iraq’s ongoing reliance on gas imports from Iran, production atAkkas remains insufficient to meet the country’s electricity generation needs.