‚ÄčKogas to cut stake in Iraq gas field as violence rises

February 08, 2014 - 12:46:02 am

SEOUL: Korea Gas Corp (Kogas) plans gradually to reduce its stake in Iraq’s Akkas gas field, which lies in Anbar near the Syrian border, as violence rises in the troubled province.

Iraq’s top energy official said last week that spillover attacks from the civil war in Syria were hindering development of Iraq’s gas and oil reserves in the region. 

Kogas told South Korea’s stock exchange in a Friday filing of its intention to sell part of its share in a project to develop the gas field — Iraq’s largest, with reserves of 5.6 trillion cubic feet — in 2015 or later to pay off debt. 

The state-run company did not say how large a stake it wanted to sell, but added that no sale process had yet started. It gave no further details. Sunni Islamist militants have been regaining ground in Iraq, particularly in the western province of Anbar where they overran two cities on January 1.

A week later, a spokesman for Kogas, the world’s top corporate buyer of liquefied natural gas, said the regional strife was having no impact on the company’s operations. More than 1,000 people have been killed across Iraq since then, building on a trend of intensifying violence that made last year the country’s bloodiest since 2008, when sectarian warfare began to abate from its height.

Reuters

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