Abu Dhabi – Mubasher: Pearl Petroleum, majority-owned by the UAE's Dana Gas and its affiliate Crescent, announced signing a new 20-year gas sales deal with the Kurdistan Regional Government (KRG).
Under the agreement, Pearl Petroleum, whose shareholders also include OMV, MOL, and RWE, will increase output by 250 million standard cubic feet (MMscf) per day by 2021 as part of its expansion plans in the Kurdistan Region of Iraq (KRI) in a bid to raise local electricity output, Oil and Gas Middle East reported on Wednesday.
The Dana Gas, Crescent-led consortium is working on its $700 million expansion plan at the Khor Mor plant which will include two new production trains and new wells in an effort to boost output to 650 MMscf per day by 2021 and 900 MMscf per day in 2022, from 400 MMscf a day.
In November 2018, the Khor Mor plant witnessed a 30% production growth, totalling 106,000 barrels of oil equivalent per day (boepd) to be the largest regional private sector upstream gas operation in Iraq.
The Kurdistan Gas Project, which started operation in 2008, supplies natural gas from the Khor Mor field to power plants in Bazian, Chemchemal and Erbil.
In February, Dana Gas reported AED 681 million ($186 million) in net losses, including impairments, in 2018, compared to net profits of AED 304 million ($83 million) in 2017.
