ERBIL, Kurdistan Region - The UAE-based Dana Gas said on Monday that it has resumed expansion at the Khor Mor gas field to add 250 million cubic feet per day to supply local power stations.
“After a year of delay due to the COVID pandemic, we are pleased to fully resume the KM250 expansion project … despite the challenges the whole world has faced over the past year we have kept our operations safe and managed to grow production and we are grateful to all our staff and to the KRG for its support,” said Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas.
Dana gas currently produces 440 million cubic feet per day and will invest further $600 million, it said in a press release, increasing production by 60 percent by April 2023.
The Khor Mor field is jointly operated by Dana Gas and Crescent Petroleum on behalf of the Pearl Petroleum Consortium.
“Under a Gas Sales agreement signed in March 2019 with the KRG [Kurdistan Regional Government] Ministry of Natural Resources, Pearl Petroleum will sell the additional quantities of gas to supply the power stations with affordable and environmentally cleaner fuel, and further enhance electricity supplies.”
“Today over 80 percent of the KRI’s electricity generation is enabled by the gas produced by the companies,” Dana Gas said in a statement with its partner Crescent Petroleum. “Total investment to date exceeds US$2 billion with total cumulative production of over 332 million barrels of oil equivalent which has resulted in significant fuel cost savings and economic benefits for the Kurdistan Region and Iraq as a whole.”
Dana Gas started production from Khor Mor in 2008.
After the KM250 train, there are plans to add a further KM500 train which would take production to almost 1 billion cubic feet per day by 2024.
The KRG has struggled with economic woes for many years and has struggled to pay the oil companies operating in the Kurdistan region. However, it has managed to pay the companies regular payments in recent months as the economic impact of COVID-19 lessens and oil prices increase.
“With our partners in Pearl Petroleum we are proud to be investing further in the gas sector of the Kurdistan Region of Iraq, delivering a reliable source of cleaner energy, and supporting local economic development,” Dr. Patrick Allman-Ward, CEO of Dana Gas said.
“The continuing receipt of payments in a timely manner gives confidence for our continued investment commitment as we enter the next exciting phase of growth with the Khor Mor expansion, which will be carried out under strict health protocols to ensure the safety of our staff and service providers.”
