The Iraqi government is set to issue a final notice to terminate the contract of the Ukrainian company operating the Akkas gas field, according to a statement from Iraq’s parliamentary oil and gas committee on Friday.
Committee spokesperson Ali Shaddad revealed that the Ukrainian company had only visited the Akkas site twice. The company claimed that it was blocked by unidentified armed groups during one of its visits, a claim that was denied by Midland Oil Company.
The oil committee recently questioned Iraq’s oil minister over the company’s background, following social media allegations linking it to a beauty salon owner. These posts raised doubts about the company’s financial capacity to handle such a large project. Shaddad pointed out that Iraq is increasingly facing a troubling trend, where newly established companies are securing major contracts through unclear and opaque processes, resulting in delays for critical infrastructure projects.
In response to the allegations, the oil minister confirmed that the company’s official documents were valid and that it possessed the necessary financial resources and technical expertise for the project. He also challenged those spreading the allegations to provide formal evidence to support their claims.
In 2024, Iraq’s Oil Ministry signed a contract with the Ukrainian company to operate the Akkas gas field under external pressure. The company provided a $50 million financial guarantee and has been working in partnership with the North Oil Company and Basra Oil Company.
Shaddad emphasized the strategic importance of the Akkas gas field, describing it as one of Iraq’s most valuable assets. With a production capacity of five million cubic meters of high-quality, pure gas, the field plays a vital role in Iraq’s energy sector. Initially awarded to a Turkish company after the fall of the former regime, the contract was canceled when the company withdrew following the ISIS incursion.
Oil Minister Hayan Abdul Ghani previously stated that 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 has not been sufficient to meet the nation’s electricity generation needs.