/IRBIS, May 11, 2011/ - JSC Exploration and Production KMG has informed the Ministry of Oil and Gas of the Republic of Iraq and the company Korea Gas Corporation ("KOGAS") about terminate of its participation in the negotiation process for field development in Akkas in Iraq, was stated in a report published today by KMG.

As indicated, KMG EP in October 2010 together with KOGAS ("Consortium") won a tender for development located in the Republic of Iraq gas field Akkas. The Consortium held a series of talks with the Iraqi government to sign a contract to develop the field Akkas.

It is noted that during the negotiations the sides failed to resolve some questions raised at a late stage, and as a result, failed to develop a consensus document that would fully meet the interests of all parties.

"KMG EP underlines that still believes Iraq is a region attractive for investment. The company appreciates the work done by partners from the Government of Iraq and the company KOGAS on this project, thanks them for their efforts and regrets that the continued participation of KMG in the field development in Akkas is not possible "- the report says.

[2011-05-11]