Korea Gas Corp., or Kogas, said Thursday that it
will go ahead with the development of one of Iraq's
largest gas fields despite the recent withdrawal of its foreign partner in the
project.
The Korean state-run gas company's decision comes at a time of increasing
interest by South Korean companies in business opportunities in war-ravaged Iraq,
including in its huge upstream resources sector and in major infrastructure and
power projects.
After the withdrawal of Kazakhstan's state gas company KazMunaiGas EP JSC from
the gas project earlier this month, Kogas has decided to double its share,
taking over KazMunaiGas's stake, Kogas said in a regulatory filing.
Kogas will now have a 75% stake in the Akkas gas venture, up from 37.5%
previously, with Iraq's
state-run North Oil Company holding the other 25%.
The company plans to invest an estimated $2.66 billion in the Akkas project
over a 20-year period, said a company official, who declined to be named. But
that estimate is based on an assumption that Kogas keeps the entire 75% stake
in the project, he said.