“Pearl Petroleum has initiated first phase development activities at Chemchemal, one of Iraq’s largest world-class and undeveloped gas fields. A $160 million investment program is now underway to drill three wells and install an extended well test facility,” Dana Gas said in a disclosure on the Abu Dhabi Securities Exchange (ADX).
The Chamchamal gas field and the nearby Khor Mor field, which Dana Gas also operates, are among Iraq’s largest energy fields. According to the disclosure, the Chamchamal field is set to produce 75 million standard cubic feet of gas per day (mmscf/d) by mid-2026.
The company also recorded $43 million in profits since the beginning of the year - a 13 percent increase from the same period last year - despite lower oil prices.
“Daily gas production at Khor Mor reached 525 million standard cubic feet, marking a 75% increase since 2017. The field continues to support over 75% of the Kurdistan Region’s power generation needs,” Dana Gas said.
Last month, Dana Gas announced that a mega expansion project at Khor Mor, labeled KM250, is set to be completed early next year, ahead of schedule. The expansion is set to significantly boost the Kurdistan Region’s electricity generation capabilities.
“Once fully operational, KM250 is expected to add 250 MMscf/d of processing capacity, increasing Pearl Petroleum’s production by 50%, while significantly boosting Dana Gas’s financial performance and cash flow,” it said.
Crescent Petroleum and its affiliate, Dana Gas, struck a deal with the Kurdistan Regional Government (KRG) in 2007 to develop the Region’s substantial gas resources. They also agreed to establish Kurdistan Gas City, a major new gas-utilization industrial complex to promote private sector investment.
The KM250 expansion project is supported by a seven-year, $250 million financing agreement between Dana Gas and the US International Development Finance Cooperation.
“We achieved higher production in the KRI [Kurdistan Region of Iraq] while reducing our operational and finance costs. We also continue to make excellent progress on the KM250 expansion, and we remain on track to achieve first gas by Q1 2026,” said Dana Gas CEO Richard Hall.
Located in Sulaimani’s Chamchamal district, Khor Mor frequently comes under attack, reportedly by Iran-affiliated Iraqi militias taking advantage of its strategic and economic importance for the Kurdistan Region, leading to major power disruptions across the Region and hindering expansion projects at the site.
A drone targeted the field in February but did not cause material damage or casualties. Sulaimani-based Kurdish counterterrorism forces blamed “militia groups and outlaws” for the attack.
In April of last year, a drone strike at the site killed four Yemeni nationals and injured several others who were repairing damage from a previous attack. The strike caused Dana Gas to suspend production temporarily.
Dana Gas has also warned that attacks on Khor Mor directly impact the lives of the Kurdistan Region’s citizens.