Dana Gas-led consortium to invest $700m to expand Kurdistan's Khor Mor gas complex

Dana Gas-led consortium to invest $700m to expand Kurdistan's Khor Mor gas complex
Dana Gas is leading the consortium that is expanding Kurdistan Gas Project.
Published: 7 March 2019 - 8 a.m.
By: Oscar Rousseau

The Pearl Petroleum consortium, led by the UAE’s Dana Gas, will invest $700m (AED2.6bn) to expand Kurdistan’s Khor Mor gas complex under a 20-year sales agreement with Iraq’s Kurdistan Regional Government for Kurdistan Gas Project.

Besides Dana Gas, the consortium comprises Sharjah’s Crescent Petroleum, Austria’s OMV, German-based RWE, and Hungary-headquartered Mol Group. The latest expansion agreement will see gas production and electricity generation values rising for the local region.

The Kurdistan Gas Project supplies natural gas from the Khor Mor field by pipeline to power plants in Bazian, Chemchemal, and Erbil. It also delivers liquefied petroleum gas and condensate for sale in local markets.

Expansion work for the gas plant includes the construction of two production trains at Khor Mor and drilling wells to raise production capacity by 63%, with a view to making the facility Iraq's largest private sector upstream gas operation.

Further construction work will see the establishment of wells in the Chemchemal field, and the installation of gas processing and liquid extraction facilities. A completion timeline has yet to be revealed.

More than $1.6bn (AED5.8bn) has been invested in Kurdistan Gas Project to date, with 260 million barrels of oil produced, the company said in a statement.

Production from the recently-built complex in Khor Mor started 15 months ago, and the consortium plans to produce more gas to boost local domestic electricity supply.

Chief executive officer of Crescent Petroleum, Majid Jafar, who is also the board managing director of Dana Gas, described the sales agreement as a “new chapter in the expansion of the Kurdistan Gas Project”.

Click here to add your comment

Please add your comment below
Your email address will not be published