ERBIL, Kurdistan Region – Pearl Petroleum, a consortium led by Emirati oil and gas giants Crescent Petroleum and Dana Gas, has struck a deal with the Kurdistan Regional Government (KRG) to boost gas extraction at the Khor Mor field in Chamchamal by 63 percent by the year 2022.
The agreement was signed on February 19, 2019 by the KRG’s Minister of Natural Resources Ashti Hawrami and Majid Jafar, the CEO of Crescent Petroleum and Board Managing Director of Dana Gas on behalf of Pearl Petroleum.
“This agreement is an important step for us as we deliver improved services to the people of the Kurdistan Region of Iraq through enhanced electricity generation from the increase in gas production by the Consortium,” Hawrami said in a statement.
“The Kurdistan Region holds significant reserves of gas and the KRG is committed to playing a positive role in the growing gas and electricity needs of Iraq and the region.”
The consortium will invest $700 million in the Khor Mor field, which will see two new production trains and new wells drilled.
By 2021 the field will see a 250 MMscf/day increase, raising the current 400 MMscf/day to 650. By 2022 this will rise to 900.
Patrick Allman-Ward, CEO of Dana Gas, said: “Dana Gas and our partners in Pearl Petroleum are particularly proud to be investing further in the gas sector of the Kurdistan Region of Iraq, delivering a reliable source of cleaner energy, and supporting local economic development.”
“The continuing receipt of payments in a timely manner gives confidence for our continued investment commitment as we enter our second decade of production,” Allman-Ward added.
The expansion is designed to “boost much needed local domestic electricity generation”, Jafar said.
“We look forward to developing the significant resources from these important fields, for the benefit of the Kurdistan Region and all of Iraq,” he added.
The Kurdistan Region has only recently begun using natural gas to power its electricity grid. The Region suffers from chronic shortages of electricity, especially in the peaks of summer and winter.
Gas from Khor Mor field is powering major electricity plants in Erbil and Sulaimani.
The KRG hopes a boost in gas extraction could make it a key player on the global market.
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