SULAIMANI (ESTA) — United Arab Emirates energy firm Dana Gas said on Monday it had resumed the expansion of a project at Khor Mor field in the Kurdistan Region, worth $600 million.
The company said the project would add a further 250 million cubic feet a day of additional gas production, which will be used by local power stations.
It added that the investment would increase production by 57% within two years.
“The project construction work had been put on hold due to the COVID pandemic but is now on track for a new target start date of April 2023, after agreement to lift the force majeure with both Kurdistan Regional Government and the contractor,” Dana Gas said in a statement.
The UAE energy firm, as part of Pearl Petroleum, and the KRG ministry of natural resources signed a Gas Sales agreement in March 2019, according to the company.
Under the deal, Pearl Petroleum will sell the additional quantities of gas to supply the power stations and further enhance electricity supplies, Dana gas said.
Current output at the Khor Mor field is 440 million cubic feet per day of natural gas as well as 15,700 barrels per day (bpd) of condensate and 1,020 tons of liquified petroleum gas (LPG), or a total of 110,400 barrels of oil equivalent (boe) per day.
“With our partners in Pearl Petroleum we are 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,” Dana Gas CEO Patrick Allman-Ward said.
“The continuing receipt of payments in a timely manner gives confidence for our continued investment commitment as we enter the next exciting phase of growth with the Khor Mor expansion, which will be carried out under strict health protocols to ensure the safety of our staff and service providers,” he added.
Dana Gas also said there were plans to add a further KM500 train which would take production to almost 1 billion cubic feet per day by 2024.
