Dana Gas and Crescent contributing to KRI
Consortium has invested more than $1.2bn to region
Dana Gas and Crescent Petroleum have made a significant contribution towards the Kurdistan Region of Iraq’s (KRI) economic and social development, according to a new report.
The Consortium’s total investment of over $1.2bn so far in the development of Kor Mor and Chemchemal fields represents one of the largest private sector investments in Iraq’s oil and gas sector.
It has enabled 1,750 MW of affordable electricity supply for millions of people in the Kurdistan Region.
It is also achieving over $3.4bn of recurring annual savings in fuel costs for the KRG for power generation, totaling close to $16bn in savings from the start of production in 2008 calculated until the end of 2014.
From an environmental perspective as well, the reduction of greenhouse gas emissions as a result of using cleaner natural gas at the power stations is valued at about $300mn per year.
The report also estimates that the Gas Project has, as a result of increased availability of electricity, enabled additional private sector investment in the KRI of over $30bn with resulting significant GDP growth.
The downstream economic impact is estimated by the report at between $9.6bn and $15.5bn (40% - 66% of the 2011 GDP of KRI).
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said: “We are proud that our investment and project have brought such important benefits to the government and people of the Kurdistan Region, in particular through fuel cost savings for affordable electricity and the additional investments and economic benefits that this has enabled.
“This professional report by an internationally reputed consulting firm has quantified these benefits, and we hope to expand our investments and production under our contract going forward for the benefit of the people of Kurdistan Region and all of Iraq.”
Patrick Allman-Ward, CEO of Dana Gas, added: “Despite the challenges we have faced including with payments, we have demonstrated our unwavering commitment to the Kurdistan Region and the KRG as a long-term partner through our continued operations and production, and we hope to build upon this in the years to come.
“The gas resources we have proven up through our appraisal have significant potential for further growth potential as well.”
As joint operators of the Khor Mor Field on behalf of the Pearl Consortium, Dana Gas and Crescent Petroleum are currently producing an average of 84,000 barrels of oil equivalent (boe) per day including 340MMscfd of natural gas as well as condensates and LPG, with total cumulative production of over 150 million boe to date since continuous production began in October 2008.