Dana Gas, Crescent Petroleum to invest $600mln more in Khor Mor project 

Work resumes on project after agreement to lift force majeure

  
A view shows UAE's Dana Gas building in Cairo November 2, 2012.

A view shows UAE's Dana Gas building in Cairo November 2, 2012.

REUTERS/Mohamed Abd El Ghany

United Arab Emirates-based Dana Gas and Crescent Petroleum said on Monday they will invest another $600 million in the expansion project at the Khor Morfield in the Kurdistan Region of Iraq (KRI), work on which has resumed after a year-long hiatus due to the coronavirus pandemic with a new target start date set for April 2023.

The additional investment will add 250 million cubic feet per day of “much-needed” additional gas production to supply the local power stations, the companies said in a filing to Abu Dhabi Stock Exchange, where Dana is listed. 

Dana and Crescent operate the gas field on behalf of the Pearl Petroleum consortium.

The new start date has been set after agreement to lift the force majeure with both the Kurdistan Regional Government (KRG) and the US contractor, Exterran.

Under a gas sales agreement signed in March 2019 with the KRG 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 enhanceelectricity supplies. 

Today over 80 percent of the KRI’s electricity generation is enabled by the gas produced by the companies.

Current production at the Khor Mor field is 440 million cubic feet per day of natural gas as well as 15,700 barrels per day of condensate and 1,020 tonnes of liquified petroleum gas (LPG), or a total of 110,400 barrels of oil equivalent (boe) per day,making it the largest overall producer in the KRI and the largest private sector upstream gas operation in Iraq, Dana said in the statement.

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.

Total investment to date has topped $2 billion with total cumulative production of over 332 million barrels of oil equivalent (boe), which has resulted in significant fuel cost savings and economic benefits for the Kurdistan Region and Iraq as a whole, it added.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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