Dana Gas, Crescent Petroleum sign 20-year gas sales agreement with KRG

8726079902 69afc899fd zPearl Petroleum, the UAE consortium led by Crescent Petroleum and Dana Gas, has signed a new 20-year Gas Sales Agreement (GSA) with Iraq’s Kurdistan Regional Government (KRG) for the Kurdistan Gas Project

The agreement is to enable the production and sales of an additional 250 mmscfd, which the consortium aims to produce by 2021 as part of its expansion plans in Kurdistan region of Iraq (KRI), to boost the much-needed local domestic electricity generation.

Established in 2007, the Kurdistan Gas Project supplies natural gas from the Khor Mor field by pipeline to power plants in Bazian, Chemchemal and Erbil, as well as LPG and condensate sold in local markets.

The US$700mn expansion underway at the Khor Mor plant will include the addition of two new production trains at the Khor Mor plant, as well as the drilling of new wells with plans to increase production from the current 400 mmscfd to 650 mmscfd by 2021 based on this latest GSA, and then to 900 mmscfd beyond that by 2022.

This follows the 30 per cent production increase from de-bottlenecking throughput at the Khor Mor plant, which brought current total production to 106,000 boed, making it the largest regional private sector upstream gas operation in Iraq.

Ashti Hawrami, minister of natural resources of the KRG, 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. The Kurdistan Region holds significant reserves of gas and the KRG is committed to playing a positive role in the growing gas and electricity needs of Iraq and the region.”

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