ERBIL, Kurdistan Region - Dana Gas said on Wednesday that natural gas production at its Khor Mor field in the Kurdistan Region hit a new record of 500 MMscf/d after successful “plant de-bottlenecking enhancements.”
The Saharjah based company announced its financial result for the first nine months of this year, generating a net profit of $161 million dollars, a 64 percent increase compared to the adjusted net profit of last year.
“The gains in Dana Gas’s profitability in the first nine months of the year were driven by higher realized prices, prudent cost control and strong operational performance in the Kurdistan Region of Iraq (KRI),” a statement from the company read.
“In the first nine months, production in the KRI increased 1% and at the beginning of the fourth quarter, production capacity increased at the Khor Mor Gas Plant by 50 MMscf/d to 500 MMscf/d following the successful completion of further plant de-bottlenecking enhancements.”
The production at Khor Mor began in late 2008 and reached 305 MMscf/d in 2018 which was then further increased to 452 MMscf/d by the end of last year.
The natural gas produced in the Kurdistan Region is primarily used for generating electricity at three plants across the Region but security threats have prevented the company from implementing the development project for production at a faster pace.
Khor Mor field has repeatedly come under rocket attacks, reportedly by Iran-affiliated Iraqi militia groups since the beginning of the year, the latest being in early October. Dana Gas later confirmed the rocket atatcks but said there were no casualties or material damage.
A major study of the prospect of the natural gas production in the Kurdistan Region backed by the US Department of Energy found that with the right level of investment, the Region, which produces around 5 BCM per year, now could exploit its resources further and provide 10 BCM to Iraq proper in the coming years and 10 BCM to Turkey by 2026 when the Iran-Turkey natural gas contract expires.
Dana Gas is currently implementing an expansion project known as KM250 which is expected to increase the production to 700 MMscf/d by April 2023. The project is supported by a $250 million financing agreement for 7 years announced in September 2021 with the U.S. International Development Finance Corporation.
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