Dana Gas and Crescent Petroleum have announced that the Khor Mor field now produces 80,000 barrels of oil equivalent per day (boepd)
The jointly operated field, which recently reached its fourth year of production, is located in the Kurdistan Region of Iraq.
Majid Jafar, CEO of Crescent Petroleum and member of the Dana Gas board of directors, said, “We are proud to be the largest investors in the [Kurdistan Region of Iraq's] oil and gas sector, and the highest petroleum producers since our first production four years ago, which enables electricity supply for millions of Iraqis and billions of dollars of ongoing fuel savings for the government.
“We are working with the Kurdistan Regional Government (KRG) Ministry of Natural Resources on the next phase of development and expansion, to grow our operations and enable further progress and prosperity for the local community,” he added.
Total investment in Khor Mor to date is close to US$1bn and total cumulative petroleum production has exceeded 67mn boe, according to the joint operators.
Daily production on the field includes 340mn cubic feet of gas per day (cfd) and 15,000 bpd of condensate liquids, and both companies have revealed that there were plans for further expansion on the field.
In total, more than 279 bcf of gas and 13mn barrels of condensate liquids have reportedly been produced by Khor Mor since the start of production in October 2008.
The companies have claimed that the gas supply to local power stations has provided an additional electricity supply of 1,750MW locally, ensuring almost continuous power supply to four million people in the Kurdistan Region of Iraq. They added that the region's government had benefitted from US$5.4bn worth of fuel cost savings, with further annual savings of US$2.5bn predicted.
Rashid Al-Jarwan, executive director and acting CEO of Dana Gas, said, “This important milestone has been achieved with the co-operation and support of the KRG, as well as our partners, contractors and local staff.
“In addition, we are working with the KRG to improve and resolve the outstanding receivables, and are very encouraged by the recent announcement on the resumption of payments from the federal government.”
Dana Gas and Crescent Petroleum had, by the end of September 2012, invested a total of US$975mn in the Khor Mor and Chemchemal blocks, following the signing of contracts with the KRG in April 2007.
