Dana Gas and Crescent Petroleum have resumed the expansion project at the Khor Mor field in the Kurdistan Region of Iraq (KRI), which was halted due to the Covid-19 crisis.

Both UAE-based firms, Dana Gas and Crescent Petroleum operate the Khor Mor field on behalf of the Pearl Petroleum consortium.

After an agreement to lift the force majeure with both the Kurdistan Regional Government (KRG) and the contractor, the KM250 project is now on track for a revised start date of April 2023.

Dana Gas CEO Dr Patrick Allman-Ward said: “With our partners in Pearl Petroleum, we are proud to be investing further in the gas sector of the Kurdistan Region of Iraq, delivering a reliable source of cleaner energy, and supporting local economic development.

“The continuing receipt of payments in a timely manner gives confidence for our continued investment commitment as we enter the next exciting phase of growth with the Khor Mor expansion, which will be carried out under strict health protocols to ensure the safety of our staff and service providers.”

With an additional investment of $600m, the firms aim to increase production from 440 million cubic feet per day (MMSCFD) to 690MMSCFD, which is equivalent to an increase of 57%.

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Once completed, the project will see an additional gas production of 250MMSCFD, which will be supplied to the local power stations by Pearl Petroleum to enhance electricity supplies.

Currently, the Khor Mor field produces 440MMSCFD of natural gas as well as 15,700 barrels of condensate per day and 1,020t of liquefied petroleum gas (LPG), or a total of 110,400 barrels of oil equivalent per day (boepd).

With its production capabilities, the Khor Mor field has positioned itself as the largest private-sector upstream gas operation in Iraq.

Upon completion of the KM250 train, the companies intend to add a further KM500 train to increase production capacity to nearly one billion cubic feet per day by 2024.