Enerflex’s contract terminated in Kormor 250 project, Khor Mor field in Kurdistan Region

ERBIL, Kurdistan Region (Kurdistan 24) – Enerflex company for the development of the Khor Mor gas field, terminated its contract in Kormor 250 project in the Khor Mor field in Kurdistan Region, and Dana Gas confirmed the termination of the contractor working at its project in that field in Kurdistan Region on August 20th, 2024.

Ending the contract is said to be due to delays in the company’s progress, according to the terms and conditions; Enerflex’s inability led to miss out the project’s deadlines.
Therefore, to prevent further damages to the project’s timeline and goals, Pearl Petroleum, the operating company, on August 19, 2024, served a notice of contract terminating to Enerflex.

As it’s known the Pearl Petroleum Co. Ltd., is a member consortium, in which Dana Gas holds a significant share with. Pearl also reserved all the rights under the contract’s terms and conditions, including any potential claims for damages.

“The ongoing impact of performance issues has materially affected Enerflex’s ability to meet its contractual obligations. Thus, it led to ‘unacceptable delays’ and in return hindering timely completion of the project (KM250)” Dana Gas announced in a statement on August 20th, 2024.

“To safeguard the interests of Pearl Petroleum, its stakeholders and the people of the Kurdistan Region, Pearl Petroleum, has taken the necessary step of issuing this notice of termination,” The statement added.

Such step enables Pearl Petroleum to have a direct control over the remaining phases of the project.

However, it’s been ensured by Dana Gas that it is brought back on track and will be completed in the timeliest manner.

Dana Gas is a UAE-based Crescent Company, both of which collectively own 70% of the Khor Mor gas field.

The remaining 30% is held by another three European energy companies.

Read More: Dana Gas reports increased profit margin, revenue in Khor Mor Field for Q2 2024

Therefore, the responsibility of the project, as a whole, now transferred to the Pearl Petroleum Consortium.

The company has already taken the necessary actions to ensure about the project’s completion, yet it’s expected to be completed by the end of this year.
Once the project is completed, it will increase gas production capacity of the Khor Mor field from 500 million cubic feet to 750 million cubic feet.

The Khor Mor gas field locates in Chamchamal District in Sulaimani province, in Kurdistan Region.

It is understood that the field is considered as the largest-producing gas field in Kurdistan Region and Iraq, covering 135 square kilometers.

Nearly, 8.2 trillion cubic feet of reserves, as well as generating electricity, supplying 67% of Kurdistan's needs. However, the production has been disrupted due to repeated attacks on the site that delayed expansion plans.

The site is managed by a consortium which led by Dana Gas.

Prepared by Seyran