A Ukrainian company which was awarded a major gas deal by Iraq last month is too weak to complete the project on its own, the head of Ukraine’s International Chamber of Commerce in Iraq said on Wednesday.

Imad Balek said he believes Ukrezemresurs Company would resort to hiring other firms to develop the Akkas gas field that was abandoned by a South Korean firm eight years ago.

“This company is very weak and cannot finish such a large project…I believe that it intends to resort to other companies to help in developing the field…this company is not qualified for such a massive field,” Balek told Iraq’s Aliqtisad News network.

Balek was echoing fears by Iraq’s Parliamentary Oil and Gas Committee that Ukrezemresurs would only waste Iraq’s resources and funds.

Iraqi Oil Minister Hayan Abdel Ghani said after signing the deal in late April that the project would add 100 million cubic feet per day (mcf/d) in phase 1 and 400 mcf/d when phase 2 is completed after four years.

Discovered in 1992, Akkas field contains around 5.6 trillion cubic feet of proven natural gas deposits, according to Iraqi estimates.

Read more: Ukrainian firm wins major Iraq gas deal

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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