Dana Gas along with its partner Crescent Petroleum have resumed the expansion project at the Khor Mor (KM) field in the Kurdistan Region of Iraq (KRI), which the companies jointly operate on behalf of the Pearl Petroleum consortium, according to press release.
The KM250 expansion project includes a further $600 million investment to add 250 million cubic feet per day (mmcf/d) of natural gas production to supply the local power stations.
The project construction was suspended due to the COVID-19 pandemic, but it was resumed for a new target start date of April 2023, following the agreement to lift the force majeure with the Kurdistan Regional Government (KRG) and the contractor. The natural gas produced by both companies covers more than 80% of the KRI’s electricity production.
The current production at the Khor Mor field is 440 million cubic feet (mmcf) of natural gas, in addition to 15,700 barrels per day (bbls/d) of condensate, and 1,020 tons of liquefied petroleum gas (LPG), or a total of 110,400 barrels of oil equivalent per day (bbloe/d).
Additionally, 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 CEO of Crescent Petroleum and Board Managing Director of Dana Gas, Majid Jafar, expressed his pleasure with this achievement and said ” After a year of delay due to the COVID pandemic, we are pleased to fully resume the KM250 expansion project to invest US$600 million and grow the gas production almost 60% within 2 years from now, supporting the local electricity provision even further.”
For his part, Patrick Allman-Ward, CEO of Dana Gas, commented “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.”
“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.” he added.
