Pearl Petroleum has signed a 10-year gas sales agreement with the Kurdistan Regional Government (KRG), a Dana Gas press release detailed.
The agreement will see the consortium led by Dana Gas and Crescent Petroleum sell an estimated 80 mcf/d of additional gas to the KRG from the Khor Mor field, the current production of which is 305 mcf/d.
The deal was signed between CEO of Crescent Petroleum Majid Jafar, CEO of Dana Gas, Dr. Patrick Allman-Ward, and KRG Minister of Natural Resources Dr. Ashti Hawrami.
The increased production comes as a part of an expansion programme, the initial phase of which “is through a fast-track debottlenecking project, whereby Pearl will increase daily production of natural gas and condensates from the Khor Mor Field by around 25% later this year,” the statement reads.
The overall plan is to increase gas production by a further 125% within two years, reaching an accumulated production of 900 mcf/d of gas and associated liquids.
A Dana Gas appraisal of the field revealed proven certified reserves of 15 tcf of gas and 310 mb of condensate. Total investment in the project to date exceeds $1.3 billion.
In August 2017, a case in the London Court of Arbitration between the KRG and Pearl regarding the KRG underpaying Pearl for gas liquid production resulted in a $1 billion settlement in addition to the KRG commiting to expand their investment and operations in the region.