Iraq’s government will soon issue a final notice to end the contract with the Ukrainian company operating the Akkas gas field. This decision follows growing concerns over the company’s performance and credibility. The announcement came from Iraq’s parliamentary oil and gas committee on Friday.
Ali Shaddad, spokesperson for the committee, revealed that the Ukrainian company visited the Akkas site only twice. During one visit, the company claimed that it was blocked by unidentified armed groups. However, Midland Oil Company denied this accusation, dismissing it as false.
The committee has also raised questions about the company’s background. Recent social media posts linked the company to a beauty salon owner, fueling doubts about its financial capacity. These posts have led to further scrutiny of the company’s legitimacy. Shaddad pointed out that Iraq faces a troubling trend of new companies securing major contracts through unclear and opaque processes. This trend has resulted in delays in vital infrastructure projects.
Despite these concerns, Iraq’s Oil Minister has defended the company, affirming that its official documents are valid. The minister also emphasized that the company possesses the necessary financial resources and technical expertise to carry out the project. He urged those spreading doubts to present formal evidence.
In 2024, Iraq’s Oil Ministry signed a contract with the Ukrainian company, amidst external pressure. The company provided a $50 million financial guarantee and is collaborating with North Oil Company and Basra Oil Company. Shaddad highlighted the strategic importance of the Akkas gas field, calling it one of Iraq’s most valuable assets. The field produces high-quality gas with a capacity of five million cubic meters.
Originally, a Turkish company held the contract for the Akkas field. However, after the ISIS incursion, the company withdrew, and the contract was canceled. Oil Minister Hayan Abdul Ghani stated that the project aims to provide additional natural gas for the country’s power stations.
Despite ongoing reliance on gas imports from Iran, Iraq’s production at Akkas is still insufficient to meet its electricity needs. The termination of the Ukrainian company’s contract signals Iraq’s efforts to address this pressing energy challenge.