Abu Dhabi – Mubasher: Pearl Petroleum Company Limited, a consortium led by Dana Gas and Crescent Petroleum of the UAE, has entered into a seven-year financing agreement worth $250 million (AED 917 million) to support the gas expansion works at the Khor Mor gas plant in the Kurdistan Region of Iraq (KRI).
The company has signed the agreement with the US International Development Finance Corporation (DFC), the development finance arm of the US government, according to a press release on Wednesday.
The $630 million project aims to raise gas production capacity by 50% to 690 million standard cubic feet (scf)/day to meet the demands for clean natural gas for electricity generation and industry in the KRI.
The remaining financing of the project has been secured through a regional bank facility and the engineering, procurement, and construction (EPC) contractor.
The KM-250 project is the first stage of a two-train expansion project at Khor Mor that will boost total production capacity to around 1 billion scf/day.
The CEO of Dana Gas, Patrick Allman-Ward, said: "With our partners in Pearl Petroleum we are proud to be further developing the gas sector of the Kurdistan Region of Iraq, delivering expanded supply of cleaner energy, and supporting local economic development."
Meanwhile, the Acting CEO of DFC, Dev Jagadesan, commented: "This highly developmental project represents the United States’ continuing investment in the KRI."
