ERBIL (Kurdistan 24) – Pearl Petroleum, a consortium that oil and gas operator Dana Gas leads, announced on Wednesday it had signed a 20-year Gas Sales Agreement with the Kurdistan Regional Government (KRG) as part of a plan to expand its operations in the Kurdistan Region.
According to a statement on Dana Gas’ website, the deal was signed on Feb. 19 and “all approvals for the agreement… have since been granted, with project work now under implementation.”
The new agreement is meant “to enable production sales of an additional 250 MMscf/day that the Consortium aims to produce by 2021” from the Kor Mor and Chemchemal fields.
To date, Dana Gas has invested over USD 1.6 billion in the Kurdistan Region’s gas and energy sector, producing more than 260 million barrels of oil which the company says has provided “billions of dollars in fuel cost savings and wider economic benefits for the Kurdistan Region and Iraq.”
KRG Minister of Natural Resources, Ashti Hawrami, described the deal as “an important step.”
Hawrami added the agreement would allow the KRG to “deliver improved services to the people of the Kurdistan Region through enhanced electricity generation from the increase in gas production.”
Dana Gas is an independent gas company headquartered in Sharjah, United Arab Emirates, that has been active in the Kurdistan Region since 2007 when it entered into agreements with the KRG to develop its substantial gas resources.
The oil and gas operator has a 35 percent stake in Pearl Petroleum, a consortium comprised of five oil and gas companies which focus on exploration and production of natural gas and liquids in the Kurdistan Region.
The Kurdistan Region estimates that it has recoverable reserves of at least 45 billion barrels of oil and 5.66 trillion cubic meters of gas.
Editing by John J. Catherine