Dana Gas Kurdistan
The Khor Mor gas field expansion will entail investments of $600 million. Image Credit: Supplied
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Dubai: UAE’s Dana Gas and Crescent Petroleum have resumed expansion at the Khor Mor gas field in Kurdistan Region of Iraq, and expected to cost $600 million. This will add a further 250 million cubic feet a day of additional gas production, which will be used by local power stations.

The project work had been put on hold due to the pandemic, but is now on track for a revised start date of April 2023, after agreement to lift the force majeure with both the Kurdistan Regional Government (KRG) and the contractor.

The two UAE companies are operating the field on behalf of Pearl Petroleum.

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Current production at the 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. This makes it the largest overall producer in Kurdistan Region of Iraq - and the largest private sector upstream gas operation in Iraq.

Under a gas sales agreement signed in March 2019 with the Ministry of Natural Resources, Pearl Petroleum will sell the additional quantities of gas to supply the power stations. Over 80 per cent of the region’s curreny electricity generation is enabled by the gas produced by the companies.

In a statement, Majid Jafar, CEO of Crescent Petroleum and Managing Director of Dana Gas, said: “Despite the challenges the whole world has faced over the past year we have kept our operations safe and managed to grow production."

  1. The Kurdistan Gas Project was established in 2007, with Dana Gas and Crescent Petroleum entering an agreement with Kurdistan Regional Government for exclusive rights to appraise, develop, produce, market, and sell petroleum from the Khor Mor and Chemchemal fields in Kurdistan Region of Iraq.
  2. Production from the newly built plant in Khor Mor began in October 2008.
  3. In 2009, Pearl Petroleum was formed as a consortium with Dana Gas and Crescent Petroleum as shareholders, and with OMV, MOL, and RWE joining the consortium subsequently with a 10% share each.