UAE consortium led by Crescent Petroleum and Dana Gas, signed a new 20-year gas sales deal with the Iraq’s Kurdistan Regional Government to boost production, which will see the Khor Mor plant gas project attract another US$700 million of investment.
The agreement entails he production and sales of an additional 250 MMscf/day that the consortium plans to produce by 2021 as part of their expansion plans in the Kurdistan Region of Iraq (KRI) in order to boost much needed local domestic electricity generation.
"This gas sales agreement opens a new chapter in the expansion of the Kurdistan Gas Project that will see a further investment of over $700 million in coming years to expand production up to 900 MMscf/day, further fueling the Region's economic growth and development,” said Majid Jafar, CEO of Crescent Petroleum and board managing director of Dana Gas. “We look forward to developing the significant resources from these important fields, for the benefit of the Kurdistan Region and all of Iraq.”
Plans are underway to increase gas production from the Khor Mor field to 650 mmscf per day by 2021 and 900 mmscf per day by 2022, the companies said.
The expansion plan for the Khor Mor plant is worth $700 million, and will include adding two new production trains as well as drilling new wells to raise output from the current 400 mmscf a day, they said.
The Pearl consortium’s agreement with the Kurdistan Regional Government (KRG) is to develop, produce and sell petroleum products from the Khor Mor and Chemchemal fields.