After a year of delay, Dana Gas and Crescent Petroleum will resume expansion works on the Khor Mor project located in the Kurdistan Region of Iraq (KRI). Both companies operate the field jointly on behalf of Pearl Petroleum consortium.
The delay was due to the Covid-19 pandemic and according to Majid Jafar, CEO of Crescent Petroleum, they were pleased to finally resume the 250 kilometers expansion project. He added that with this project with $600 million in investment they will be able to grow the gas production by almost 60% which, two years from now, will be providing support to the local electricity provision.
He was expressly elated saying that despite the challenges that the whole world is currently facing they were able to keep their operations safe and managed to grow production. According to him the company is truly grateful to the staff and to the KRG for their support.
With a target start date of April 2023, the $600 million investment will add 250 million cubic feet per day of additional gas that will supply the local power stations. Resumption of the project was made possible due to the agreement to lift the force majeure with both the Kurdistan Regional Government (KRG) and the contractor.
Production at the Khor Mor field currently flows at 440 million cubic feet per day of natural gas as well as 15,700 barrels per day of condensate and 1,020 tonnes of liquified petroleum gas (LPG) for a total of 110,400 barrels of oil equivalent (boe) per day. The field is the largest overall producer in the KRI and the largest private sector upstream gas operation in Iraq.
Once the project is completed another 500 kilometer expansion is being planned which will take production to almost 1 billion cubic feet per day by 2024.