Abu Dhabi - Mubasher: Pearl Petroleum, a five-company consortium led by Crescent Petroleum and Dana Gas, has signed a 10-year Gas Sales Agreement (GSA) with the Kurdistan Regional Government (KRG).
Under the deal, UAE-based Crescent Petroleum and Dana Gas will increase daily gas and condensates production from the Khor Mor field, in Iraqi Kurdistan by around 25% later this year, Dana Gas said in a press release.
The consortium company will sell and supply the additional quantities with the aim of boosting electricity generation in Iraq, the UAE-based gas producer added.
This step is the first of a plan to accelerate gas production by a further 125% within 2 years, Dana Gas indicated, noting that gas outcome is projected to eventually stand at around 900 million cubic feet per day (mcfpd).
In January 2018, the GSA was signed by the KRG minister of natural resources Ashti Hawrami, CEO of Crescent Petroleum Majid Jafar, and CEO of Dana Gas Patrick Allman-Ward to boost the delivered gas output from the Khor Mor Field by an anticipated 80 million cubic feet of sales gas per day before the end of 2018, from the current level of 305 mcfpd.
“The gas sales agreement marks an important milestone in our tenth year of continuous production, and the beginning of a new chapter of expansion in operations and production which will see a further investment of over $600 million over the coming few years and a more than doubling of production,” CEO of Crescent Petroleum Majid Jafar commented.
It is worth mention that Pearl Petroleum’s total investment surpassed $1.3 billion now with total cumulative production over 228 million barrels of oil equivalent (boe), resulting in billions of dollars of fuel cost savings and economic benefits for the Kurdistan Region and Iraq as a whole, Dana Gas said.
Given that, Dana Gas had previously announced that the appraisal programme has to date resulted in proven certified reserves of 15 trillion cubic feet (tcf) of gas and 310 million barrels condensate.
Last August, Pearl Petroleum had reached a final settlement with the KRG of the arbitration between them, on which Pearl received $1 billion for past receivables from the KRG to expand in the region.
The planned expansions cover a multi-well drilling program in both the Khor Mor and Chemchemal fields, in addition to installing additional gas processing and liquids extraction facilities.
Accordingly, Crescent Petroleum and Dana Gas are jointly operating the aforementioned fields on behalf of Pearl Petroleum.
