3 days ago
Iraqi ex-adviser flags gaps in $2B gas deal, cites legal concerns
Shafaq News / A newly approved five-year gas supply contract in Iraq is under fire for alleged legal loopholes and significant financial discrepancies, according to former Prime Minister's Office adviser Hussein Al-Hanin.
Al-Hanin said on Thursday that the Cabinet's deal with a gas supply company—formed just three years ago—granted the firm ten exemptions despite not meeting the legal, technical, and administrative standards of the Oil Ministry. The contract, which relies on a floating offshore platform, was finalized during the Cabinet session earlier this week.
He stressed that the company's proposed price is $400M annually higher than the most competitive bids from better-established global firms such as Excelerate Energy. This discrepancy totals roughly $2B over the contract's five-year term. Al-Hanin also pointed out that the company lacks the funds to build the platform and has already received two million barrels of crude oil—worth $125M at current market prices—before any work began.
'All this happened while the Oil Minister was in London to participate in the Iraqi-British Business Council conference, and did not vote on the decision,' Al-Hanin said.
The Cabinet session also approved a direct contract with the 'Carbore' consortium to deploy power-generating ships, adding 650 megawatts to offset summer peak demand. Additionally, the session greenlit the floating storage and regasification unit (FSRU) project, designed to supply 750 million cubic feet of liquefied natural gas daily to the Basmaya Power Plant.
