UAE's Pearl Petroleum plans new $700m Iraq Kurdistan investments

Consortium led by Crescent Petroleum and Dana Gas signs new 20-year gas sales agreement with the Kurdistan Regional Government
UAE's Pearl Petroleum plans new $700m Iraq Kurdistan investments
Majid Jafar, CEO of Crescent Petroleum and managing director of Dana Gas.
By Sam Bridge
Thu 07 Mar 2019 01:55 PM

Pearl Petroleum Company Limited, the consortium led by Crescent Petroleum and Dana Gas of the UAE, has signed a new 20-year gas sales agreement with the Kurdistan Regional Government.

The agreement will enable production and sales of an additional 250 MMscf/day that the consortium aims to produce by 2021 as part of their expansion plans in the Kurdistan Region of Iraq to boost much needed local domestic electricity generation.

The agreement was signed by Dr Ashti Hawrami, Minister of Natural Resources on behalf of the Kurdistan Regional Government, and Majid Jafar, CEO of Crescent Petroleum and managing director of Dana Gas, on behalf of Pearl Petroleum. All approvals for the agreement have been granted, with project work now under implementation.

Hawrami said: "This agreement is an important step for us as we deliver improved services to the people of the Kurdistan Region of Iraq through enhanced electricity generation from the increase in gas production by the Consortium. "

Jafar added: "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.

"We look forward to developing the significant resources from these important fields, for the benefit of the Kurdistan Region and all of Iraq."

Dr Patrick Allman-Ward, CEO of Dana Gas, said: "Dana Gas and our partners in Pearl Petroleum are particularly 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. The continuing receipt of payments in a timely manner gives confidence for our continued investment commitment as we enter our second decade of production."

The Kurdistan Gas Project was established in 2007 as Dana Gas and Crescent Petroleum entered into agreement with the Kurdistan Regional Government for certain exclusive rights to appraise, develop, produce, market, and sell petroleum from the Khor Mor and Chemchemal fields in the Kurdistan Region of Iraq.

The $700 million expansion underway at the Khor Mor plant will include the addition of two new production trains at the Khor Mor plant, as well as drilling of new wells with plans to raise production.

Total investment in the Kurdistan Gas Project to date exceeds $1.6 billion, with total cumulative production of over 260 million barrels of oil equivalent (boe).

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