Iraq signs final deals for two gas fields
Baghdad, June 5, 2011
Iraq signed the final contracts on Sunday to develop its Siba and Mansuriyah gas fields in deals involving Turkish, Kuwaiti and South Korean companies that will help diversify the country's fossil fuel production.
The Siba deal was signed with Turkey's state-owned TPAO and Kuwait Energy Company to develop the gas field in the southern oil hub of Basra.
A group led by TPAO involving Kuwait Energy Company and South Korea's Kogas signed a separate contract to develop the Mansuriyah gas field near the Iranian border in volatile Diyala province.
'This is a new beginning for the Iraqi energy industry as it is the first time we are developing Iraqi gas fields. We are seeking to meet the needs of our power stations and to make Iraq one of the leading exporters of gas in the world,' Oil Minister Abdul-Kareem Luaibi said at the signing ceremony in Baghdad.
The TPAO-Kuwait Energy Company consortium won a bid for the Siba contract at an auction on October 20 after it proposed a plateau production target of 100 million cubic feet per day and set a remuneration fee of $7.50 per barrel of oil equivalent.
TPAO has said the partners expect to invest $1 billion in the Siba field. For the Mansuriyah contract, TPAO, Kuwait Energy and Kogas won a bid at an auction held in Baghdad last year. Their consortium's proposed plateau production target was 320 million standard cubic feet per day, and it set a remuneration fee of $7 per barrel of oil equivalent. - Reuters