ERBIL, Kurdistan Region - Dana Gas and Crescent Petroleum, joint operators on behalf of the Pearl Petroleum consortium, issued a formal statement today expressing surprise at recent criticisms by the Kurdistan Regional Government (KRG) regarding gas supply deliveries to the Federal Ministry of Electricity in Kirkuk.
Pearl Petroleum strongly defended its actions, maintaining that it operates in full compliance with its contractual rights and obligations.
Key highlights of the statement
Gas sales agreement transparency: Pearl Petroleum stated that the KRG has been aware of the Gas Sales Agreement (GSA) with the ministry of electricity since January 2026, when a copy was provided to Erbil following years of discussions. The KRG ministry of natural resources was also regularly updated on preparations.
Exclusive marketing rights: The consortium asserted that the GSA was executed strictly under Pearl’s exclusive marketing rights - which have been upheld in prior international legal proceedings - and required no additional authorization or approval from the KRG. Consequently, Pearl rejected any allegations of contractual breach.
Supply and excess capacity details: The 100 MMscf/d supplied to the ministry of electricity in Kirkuk utilizes excess capacity generated by the KM250 expansion project at the Khor Mor field. This volume is separate from and in addition to the 655 MMscf/d currently provided to the KRG to cover the Kurdistan Region’s actual power needs.
Financial arrears: Pearl highlighted that it continues to fulfill all gas supply commitments to the KRG despite the government being materially in arrears on contractual payment obligations for over three years.
Investment commitment: As the largest investor in the Kurdistan Region's energy sector, with over $4 billion invested since 2007, Pearl reaffirmed its long-term commitment to its operations for the benefit of both the Kurdistan Region and Iraq as a whole.
The agreement to supply Kirkuk marks a milestone in expanding power supply security across Iraq while maintaining dedicated supply lines for the Kurdistan Region.
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