Iraq wants to take away the Akkas gas field from a Ukrainian company
Photo: Ukrzemresurs / LinkedIn

The Iraqi authorities have notified the Ukrainian company Ukrzemresurs of their decision to terminate the contract for the development of the Akkas gas field in Iraq’s Anbar province. The company described the move as "entirely wrongful" and announced the launch of a procedure to protect its rights.

"We accepted the challenge of working in a region where no international company had operated since 2014, despite the fact that many leading global energy companies had declined to take on this task. Thanks to the dedicated efforts of the Ukrzemresurs team, in April 2024 Ukrzemresurs LLC signed the Gas Development & Production Service Contract for the Akkas contract area," the company said in a statement on LinkedIn.

According to the project plan, the company was expected to produce about 1 billion cubic meters of gas annually (around 100 million cubic feet per day) within the first two years, with output projected to reach 4 billion cubic meters annually (around 400 million cubic feet per day) within four years.

Ukrzemresurs secured the contract after Korea Gas Corporation (KOGAS) ceded its development rights.

In its statement, the company noted that it faced numerous obstacles during the project, including an aggressive media campaign in Iraq and abroad, political pressure, and restricted access to the field due to the presence of paramilitary groups in the region. Ukrzemresurs stressed that it had invested significantly and developed innovative technical solutions, while the Iraqi side had failed to meet its own obligations.

The company also emphasized its willingness to continue operations in Iraq and resolve disputes peacefully but said the Iraqi authorities "declined to engage seriously in constructive discussions."

Ukrzemresurs LLC, founded in 2004, specializes in natural gas production. It is owned by Olga Yarmak, a member of the Supervisory Board of Naftogazvydobuvannya, a gas production company controlled by Mykola Rudkovsky’s Salazie B.V.

  • Iraq has some of the world’s largest proven natural gas reserves, which as of 2018 were estimated at more than 3.8 trillion cubic meters.