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Iraq gas field project makes progress

9 August 2023

An output expansion project at the Khor Mor gas field in Iraqi Kurdistan is progressing in line with the schedule set out earlier this year, according to sources.

The gas field is operated by Pearl Petroleum Company, a joint venture of UAE-based Dana Gas and Crescent Petroleum, Austria’s OMV, Germany’s RWEST and Hungary’s Mol Group.

The expansion project, known as KM250, is expected to boost the Khor Mor field’s production by 250 million cubic feet a day (cf/d), taking the total output to 700 million cf/d.

The project's engineering, procurement and construction (EPC) contract was originally awarded to US-based Exterran Corporation, which Enerflex acquired on 11 October 2022. Enerflex is a Canadian engineering company specialising in power, oil and gas.

Project execution delay

In May this year, Dana Gas said it expected delivery of first gas from the KM250 project in April 2024. This is around a year later than was anticipated at the start of 2022, when the companies said the project was scheduled to be completed in April or May 2023.

Work on the project was put on hold in June last year after a series of rocket attacks on the asset. Three attacks took place in June 2022, while another happened on 25 July last year.

The expansion project received a $250m loan from the US International Development Finance Corporation in 2021.

Dana Gas has plans for two other projects to start immediately after the KM250 project is completed. These projects are designed to boost production from 700 million cf/d to over 1 billion cf/d.

The company has previously said it expects these projects to enable it to meet the gas demand of the whole of the Kurdistan region of Iraq from 2025.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11060690/main.jpg
Wil Crisp

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