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Dana Gas, Crescent Petroleum increase production to 690MMSCFD

  2021-04-26  | 
 Zhyan News Network
Photo Credit: Dana Gas
 Zhyan News Network

SULAIMANI – Dana Gas and Crescent Petroleum announced on Monday (April 26) that an expansion project will increase their production to 690 million standard cubic feet per day in the Kurdistan Region by April 2023.

UAE's energy firm Dana Gas and Crescent Petroleum said they have invested $600 million US dollar in the project at Khor Mor field to increase their production by 57% within two years.

“The KM250 expansion involves further investment of US$600 million to add 250 million cubic feet per day of much-needed additional gas production to supply the local power stations,” they said in a statement.

Construction at the project is now on track aiming to 250 million cubic feet per day after it was put on hold due to the Covid-19 pandemic, the statement read.

“Pearl Petroleum will sell the additional quantities of gas to supply the power stations with affordable and environmentally cleaner fuel, and further enhance electricity supplies.”

Pearl Petroleum consortium led by oil and gas giant Dana Gas had raked in $151 million from gas sales, condensate and LPG, in the Kurdistan Region since the outset of the year in Sulaimani’s Chamchamal district.

Dana Gas obtained $53 million from its share from the consortium according to year-to-date data, it said in a statement.

As of end-2020, Dana Gas had total debt of $163 million including $73 million for a KRG expansion project, an investor presentation showed.

In October 2013, Dana Gas, its parent Crescent Petroleum and its partners, filed a case against the KRG in the London Court of International Arbitration in London, accusing it of underpaying for gas liquids production, according to Reuters. 

The KRG founded the Kurdistan Gas Project in 2007 when Dana Gas and Crescent Petroleum entered into a deal for exclusive rights to appraise, develop, produce, market, and sell hydrocarbons from the Khor Mor and Chemchamal fields. 

(Zhyan English)