Kurdistan on verge of major increase in oil, energy sector: Investors

ERBIL, Kurdistan Region (Kurdistan 24) – The Kurdistan Region’s gas output is on the verge of a major increase after the settlement of a court case with developers, according to investor Dana Gas.

Last week, the Kurdistan Region settled a case with Pearl Consortium by paying one billion USD to its members Dana, Crescent Petroleum, Austrian Mineral Oil Administration (OMV), Hungarian Oil and Gas Public Limited Group (MOL), and Germany’s Rhenish-Westphalian Power Plant (RWE).

Pearl had accused the Kurdistan Regional Government (KRG) of underpaying for gas liquids production and delays to field development, Reuters reported.

However, after a long-running case, the dispute was settled.

Pearl Consortium has a 10-year-old deal with the KRG to develop the Khor Mor and Chemchemal oil fields.

The Chemchemal fields are believed to be one of the largest gas deposits in the Kurdistan Region, with reserves of 17 trillion cubic feet and nearly 75 trillion resources.

According to Majid Jafar, the managing director of the board of Dana Gas, the companies would “more than double [their] output levels from the fields as part of the settlement.”

Jafar told Reuters production would increase within the next two years from 330 million cubic feet per day to about 800 million—approximately eight billion cubic meters a year.

“This is only the next phase,” he said. “These fields could potentially produce several times more.”

“We have [an] obligation to maximize the value of resources for Kurdistan and Iraq,” he continued.

Jafar noted the companies had “to meet local demands” first but said there were enough reserves to be able to export abroad.

The Dana official highlighted the Region’s ambition to put its finances in order ahead of the historic independence referendum.

“The KRG has a publicly stated goal of clearing debts with upstream investors,” Jafar said. “The contracts are solid and are respected, both of which are important for investors.”

The settlement comes ahead of the Kurdistan Region’s independence referendum scheduled for Sep. 25.

Editing by Ava Homa