Sharjah-based energy company, Dana Gas, and the Middle East’s first and largest private upstream oil and gas company Crescent Petroleum will restart the expansion of the Khor Mor gas field in Iraqi Kurdistan, which they manage as part of the Pearl Petroleum consortium.
The companies would invest $600 million to increase gas production capacity by 250 million cubic feet per day.
Dana Gas Chief Executive Officer Mr. Patrick Allman-Ward remarked that “the continuing receipt of payments promptly 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.”
The project’s development had been halted due to the COVID-19 pandemic. Following an agreement with the Kurdish Regional Government and the companies, capacity expansion is expected to be completed by April 2023.
The Pearl Consortium’s gas output accounts for more than 80 percent of Iraqi Kurdistan’s electricity generation, according to the companies.
So far, Dana Gas’ Kurdish properties have attracted over $2 billion in investment. The Khor Mor field produces 440 million cubic feet per day of gas, 15,7000 barrels of condensate per day, and 1,020 tonnes of liquefied petroleum gas. Condensate is a liquid associated with gas production that sells for a high price on the energy market.
By 2024, the consortium expects to add another gas processing train with a capacity of 500 cubic feet per day, bringing total output to approximately 1 billion cubic feet per day.
According to Crescent Petroleum Chief Executive Officer and Dana Gas Board Managing Director Mr. Majid Jafar, the new capital will help increase gas production by, “almost 60 percent within two years from now, supporting the local electricity provision even further.”
Dana Gas announced in February that it was in talks with the Development Finance Corporation to obtain a $250 million loan to expand its gas production operations in Iraq’s Kurdistan Region.
On the last day, the company terminated a $236 million deal to sell its Egyptian properties to IPR Wastani Petroleum, an exploration and production company. The Dana Gas board of directors has decided to keep and operate assets in Egypt alongside the offshore Block 6.