OREANDA-NEWS. May 12, 2011. JSC KMG EP ("KMG EP "or the "Company") has informed the Ministry of Oil and Gas of the Republic of Iraq and the company Korea Gas Corporation (KOGAS) of its withdrawal from participation in the Akkas Field Development project negotiations in Iraq.

In October 2010 KMG EP, together with KOGAS (the “Consortium”), won a tender for development of Iraq’s Akkas gas field. The Consortium has held negotiations with the Government of Iraq with the objective of signing a contract to develop the Akkas field.

Unfortunately, the talks have failed to resolve all issues which emerged at a late stage and it has not been possible to develop a consensus document that would fully meet the interests of all parties.

KMG EP would like to stress that it still believes Iraq to be an attractive area for investment. The Company appreciates the work done on this project by its partners from the Government of Iraq and KOGAS and would like to thank them for their efforts and regrets that it has not been possible for KMG EP to proceed.