Dana Gas and Crescent Petroleum Kurdistan Production Reaches 80,000 barrels per day on 4th Anniversary
-Investment almost $1 billion – highest foreign investment in Iraqi oil and gas sector
-Total 67 million barrels produced since 2008 – highest by private sector in Iraq
-Project achieves government fuel cost savings of $5.4 billion
Dana Gas, the region’s first regional private-sector natural gas company, and Crescent Petroleum, the oldest Middle East private oil and gas company, in their capacity as joint operator of the Khor Mor field, have announced that total production in their gas operations in the Kurdistan Region of Iraq has reached 80,000 barrels of oil equivalent per day at the 4th anniversary of production. Total investment to date is close to US$1 billion and total cumulative petroleum production to date has exceeded 67 million barrels of oil equivalent, making it the largest by the private sector in Iraq’s oil and gas sector.
The daily production includes 340 million cubic feet of gas per day and 15,000 barrels per day of condensate liquids, and there are plans for further expansion. In total, over 279 billion cubic feet of gas and 13 million barrels of condensate liquids have been produced by the companies since the start of production in October 2008, with the gas supply to local power stations enabling 1,750 MW of new electricity supply locally.
This has ensured almost continuous power supply for 4 million people in the Kurdistan Region, in contrast to the electricity crisis in other parts of Iraq, and provided US$5.4 billion of savings in fuel costs for the government, with annual savings of $2.5 billion going forward and major environmental benefits in cutting greenhouse gas emissions while transforming and energizing the economic and social development of the entire region at the same time.
“We are proud to be the largest investors in the Kurdistan Region’s oil and gas sector, and the highest petroleum producers since our first production four years ago, which enables electricity supply for millions of Iraqis and billions of dollars of ongoing fuel savings for the government,” said Mr. Majid Jafar, CEO of Crescent Petroleum and Member of the Dana Gas Board of Directors. “We are working with the KRG Ministry of Natural Resources on the next phase of development and expansion, to grow our operations and enable further progress and prosperity for the local community.”
Marking the fourth anniversary of continuous production by the partners, Mr.Rashid Al-Jarwan, Executive Director and Acting CEO of Dana Gas, said: “This important milestone has been achieved with the cooperation and support of the KRG, as well as our partners, contractors and local staff. In addition we are working with the KRG to improve and resolve the outstanding receivables,and are very encouraged by the recent announcement on the resumption of payments from the Federal Government.”
The project partners had by the end of September 2012 invested a total of US$975 million under contracts signed with the Kurdistan Regional Government (KRG) for the Khor Mor and Chemchemal blocks in April 2007.
Major achievements of the project so far include: installing a 180km gas pipeline across challenging mountainous terrain that required the clearing of minefields; first gas production after only 16 months; drilling successfully to tertiary reservoir formations at depths of 2,300 metres, and importing and installing over 64,000 tonnes of equipment in over 3,500 truck-loads, with pipe material supplied from China and Thailand, and the state-of-the-art gas processing plant imported from the USA.
During the project’s construction phase, work opportunities were provided for over 2,000 Iraqi workers from all ethnic groups and sects, supported by expatriate workers from over 20 nationalities in the region and worldwide. The companies have successfully implemented a nationalisation programme,and already achieved the target of 80% local staff ratio in their operations by the end of 2011, while currently implementing a major training programme for local staff.
Crescent Petroleum and Dana Gas have also implemented a corporate social responsibility programme to support the local communities, including providing school supplies, drinking water treatment, generators and fuel enabling 24 hour electricity for the local villages, mobile medical units, and youth sports facilities. These initiatives are assisting the local communities in improving their standard of living, health, well-being, security and stability and the development of human capital in the Kurdistan Region.
Erbil International Trade Fair
As a show of support for the region and to enhance business relationships,Dana Gas and Crescent Petroleum are both participating at the Erbil International Fair 2012 as a member of delegation from Sharjah Government headed by H.E. Sheikh Sultan Bin Ahmad Al Qasimi, Deputy Chairman,Sharjah Petroleum Council and a Board Member of Dana Gas. The companies will join 30 other firms from UAE at the event which will take place from 15 to 18 October 2012.
To mark the visit, Mr. Rashid Al-Jarwan, Executive Director and Acting CEO of Dana Gas, added:
“The Erbil International Fair is an important exhibition for us to attend. It is the largest trade fair in Iraq. The event offers us a targeted platform to meet Government officials and the larger business community to highlight our achievements and seek potential opportunities. Economic links between the Kurdistan Region of Iraq and the UAE are growing strong and we look forward to continue playing a significant role in the future of the Kurdistan Region of Iraq.
The Erbil International Fair is in its 8th year and is a multi-sector trade fair,attracting over 850 exhibitors from 22 countries and showcasing a wide selection of products and services. Sectors represented include; engineering,electronics, construction, energy and education. The exhibition is the largest trade fair organised in Iraq and around 75,000 visitors are expected to attend.