KOGAS to Reduce Stake in Iraqi Gas Field

Korea Gas Corp. (KOGAS) is looking to gradually reduce its stake in Iraq’s Akkas gas field, which lies in Anbar near the Syrian border, as violence rises in the province, reports news agency Reuters.

In a filing submitted to the South Korean stock exchange, the company disclosed its intention to sell part of its share in the project to develop the gas field, which is estimated to have reserves of 5.6 trillion cubic feet, in 2015 or later to pay off debt, notes Reuters.

As per the Reuters report, the company did not say how large a stake it wanted to sell, but added that no sale process had yet started.

The Iraqi-Syrian border has seen heightened violence in recent weeks, especially the western province of Anbar. According to officials, the violence has disrupted the oil and gas development activities in the region.

In addition to the rising violence, commercial factors have also prompted KOGAS to go for stake sale, Reuters says.

According the news agency, South Korea’s state-run energy companies face heavy pressure from a new government to shed assets and pay off debt by 2017. 

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