Iraq warns Ukrainian firm over slow progress at Akkas field

Shafaq News/ The Iraqi government is to issue a final notice to terminate 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 the Ukrainian company had visited the site only twice and claimed it was blocked by unidentified armed groups during one of the visits—a claim denied by Midland Oil Company.

The oil committee recently questioned the oil minister over the company's background after social media posts linked it to a beauty salon owner and raised doubts about its financial capacity. Shaddad further indicated that Iraq is increasingly facing a troubling trend of newly established companies securing major contracts through opaque processes, leading to delays in vital infrastructure projects.

However, the minister confirmed that the company’s official documents are valid and that it has the necessary financial resources and technical expertise for such projects, calling on those spreading the allegations to provide formal evidence.

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

Highlighting its strategic importance, Shaddad described the field as one of Iraq’s most vital assets, thanks to its high-quality, pure gas and a production capacity of five million cubic meters. The field was originally awarded to a Turkish company after the fall of the former regime, but the contract was later canceled when the company withdrew following the ISIS incursion.

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

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