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Wed 8 Oct 2008 03:06 PM

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Iraq project steams ahead in record time

Dana and Crescent start production, processing and transport.

Dana Gas and Crescent Petroleum have announced the start-up of natural gas production, processing and transportation by pipeline from their joint project in Kurdistan, Iraq.

The 180 km pipeline was installed in a record 15 months despite undulating terrain and the threat of landmines.

The two UAE firms are investing US$650 million under a strategic alliance and service contracts signed with the Kurdistan Regional Government (KRG) in April 2007, making it the largest private-sector investment in Iraq today and the largest private-sector oil and gas project in Iraq in several decades.

“We are very proud of this historical milestone, as the first companies from the Middle East to invest in Iraq’s oil and gas sector. We wish to thank the leadership and cooperation shown by the KRG, and also all of our staff, our contractors, and local officials for their support in this remarkable joint effort,” said Ahmed Al-Arbeed, upstream executive director, Dana Gas.

In addition seismic surveys and production wells were carried out, and brand new gas processing facilities were installed. The initial primary phase gas production is at 75 million cubic feet per day, and will rise in stages to 300 million cubic feet per day within the first half of 2009, as the power plants become fully operational. Dana Gas and Crescent Petroleum will be adding further processing capacity to handle the additional gas quantities.

“This is the first project of its kind in Iraq, and it will provide important economic and social benefits for the Kurdistan region and all of Iraq”, added Mr. Majid Jafar, Executive Director Crescent Petroleum. “We aim to now build on these achievements in the Kurdistan Region and across Iraq, with our strategic focus on maximizing economic benefit and addressing local needs.”

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