Pearl Petroleum Co. Ltd., the consortium led by the UAE-based energy firms Dana Gas and Crescent Petroleum, has signed a $250 million financing agreement with the US International Development Finance Corporation, a state financing agency, to support the gas expansion works currently underway at the Khor Mor gas plant in the Kurdistan Region of Iraq (KRI).
The seven-year financing will support an increase in gas production capacity by 50 percent to 690 million standard cubic feet (scf)/day, the Abu Dhabi Securities Exchange-listed Dana Gas, and Crescent Petroleum said in a statement on Wednesday.
The total project cost is $630 million, and the remaining financing has already been secured through a regional bank facility and the EPC contractor.
The KM-250 project is the first stage of a two-train expansion project at Khor Mor that aims to boost total production capacity to approach 1 billion scf/day. Work resumed in April 2021 after onsite construction was halted last year due to the COVID pandemic and is currently on track for completion by April 2023.
Total investment by Pearl Petroleum at Khor Mor to date exceeds $2.1 billion with total cumulative production of over 341 million barrels of oil equivalent (boe) in natural gas and liquids.
(Writing by Brinda Darasha; editing by Seban Scaria)
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