Under the $127m contract, KOGAS will build a gas pipeline that will connect the cities of Kirkuk and Baiji.

KOGAS company official was quoted by Korea Times as saying that, "We believe the latest contract will give KOGAS the upper hand in winning other large-scale projects in Iraq."

The construction work on the pipeline is expected to be completed by September 2014.

KOGAS was selected as the preferred bidder for the project out of eight other competitors.

The project is the company’s second overseas contract after it secured first foreign contract in Mozambique to build a 65km gas pipeline.