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IRAQ’S oil ministry has signed agreements that will see companies from Kuwait, Turkey and South Korea develop two of its most promising gas fields.

The first of the deals covers the Siba field, which is located in southern Iraq’s Basra Governorate and has estimated reserves of more than 1 trillion ft³. The state-run Kuwait Energy has a 60% interest and will operate the project, with the remaining 40% being held by Turkey’s national oil company TPAO. The consortium is hoping that the field will eventually produce 100m ft³/d of gas, and its development rights span 20 years.

The second contract is for development of the Mansuriyah field, based near the Iranian border in the volatile province of Diyala. South Korea’s Korgas will partner the consortium for the project, taking a 20% stake. The development will be operated by TPAO, which possess a 50% interest, with the rest going to Kuwait Energy. A significantly larger field than Siba, Mansuriyah is expected to yield 320m ft³/d.

“This is a new beginning for the Iraqi energy industry as it is our first time developing Iraqi gas fields” said Iraqi Oil Minister Abdul-Kareem Luaibi.

Despite having some of the largest reserves of oil and gas in the world, Iraq is forced to import fuel for power stations and suffers from regular electricity shortages. Issues with infrastructure, sanctions and security have hindered the development of these resources for decades.

Sara Akbar, Kuwait Energy’s deputy chairman and ceo, said: “The gas will be utilised to generate power in Baghdad and Basra, providing the Iraqi Government with cost savings, an environmentally friendlier fuel and the opportunity to better serve its people as per its overall plan.

“The signing marks the beginning of a long-term partnership with Iraq, a milestone for Kuwait Energy and a step forward in Kuwaiti-Iraqi relations.”