Shafaq News/ A member of the Iraqi Parliament's Oil and Gas Committee on Wednesday raised objections to a contract that awards what he described as a "weak" firm the rights to operate in the Akkas oilfield in the west of the country.
The Ministry of Oil had announced earlier in the day the signing of an agreement with Ukrainian company "Ukrzemresurs" to develop the field, targeting a production capacity of 400 MMCFD (million cubic feet per day).
Oil Minister Hayan Abdul-Ghani, in a press release, defended the deal that he believes it is promising for the country's overall power producing capacity.
Ali al-Mashkoor, a member of the parliamentary committee, expressed concerns about this deal. "The Ministry of Oil replaced the Korean company KOGAS with Ukrzemresurs, instead of signing with a recognized international firm," Al-Mashkoor told Shafaq News Agency. "This contradicts the directives of Prime Minister Mohammed Shia al-Sudani."
Al-Mashkoor argued that the contract is "a significant waste of Iraq's resources and could lead to the squandering of the country's oil wealth. This is an example of Iraq's never-ending problem with selecting reputable companies for its most critical economic sector."
The committee member called for canceling the contract, citing potential negative consequences for Iraq's oil sector and questioning Ukrzem Resource's competency, which he described as a "weak" company.
"We will work to expose any potential irregularities surrounding this contract," al-Mashkoor concluded. "There are suspicions that some MPs may have pursued this deal for personal interests. We will soon unveil evidence to support these claims."