Crescent Petrolem, Dana Gas hike gas output in Kurdish field

Dana Gas and its partner Crescent Petroleum have increased production capacity of the Khor Mor field in the Kurdistan region of Iraq by 30 per cent.

Dana Gas and its partner Crescent Petroleum have increased production capacity of the Khor Mor field in the Kurdistan region of Iraq by 30 per cent.

The two companies jointly operate the field on behalf of Pearl Petroleum.

The expansion at the Khor Mor gas processing plant consisted of a series of plant additions and modifications to de-bottleneck throughput, raising output capacity from 305 MMscfd of natural gas to 400 MMscfd, with over 15,000 barrels per day of condensate.

The plant, which began operating in 2008, supplies natural gas from the Khor Mor field by pipeline to power plants in the towns of Chemchemal and Erbil, and will soon supply a new plant in Bazian. The Khor Mor plant also produces LPG and NGL, which are sold and trucked to the local markets.

Under a gas sales agreement signed in January 2018 with the KRG Ministry of Natural Resources, Pearl Petroleum will sell the additional quantities of gas to supply the power stations with affordable, environmentally favourable fuel, and further enhance electricity supplies.

Total investment in the Kurdistan Gas Project to date exceeds $1.4 billion with total cumulative production over 250 million barrels of oil equivalent (boe), which has resulted in over $20 billion of fuel cost savings and economic benefits for the Kurdistan region and Iraq as a whole. Further investment is underway to expand production to 900mmscfd per over the coming 3 years, together with associated liquids.

Majid Jafar, CEO of Crescent Petroleum and board managing director of Dana Gas, said: "This production increase marks an important milestone as we also commemorate 10 years of continuous production and the beginning of a new chapter of expansion in operations and production which will see a further investment of over $600 million over the coming few years and a more than doubling of production again."

Patrick Allman-Ward, CEO of Dana Gas, said: "Despite many challenges over the past 10 years, we are proud to have maintained our production levels and operations and now with the settlement of all past receivables last summer and continuous payments since then, we look forward to significantly growing production to meet the growing demand for gas and electricity in the Kurdistan region and Iraq as a whole."

- waheedabbas@khaleejtimes.com