Custom Search

By John Lee.

Dana Gas has announced accelerated development at Kurdistan's Khor Mor and Chemchemal fields.

Full statement from Dana Gas

Dana Gas, the Middle East's leading publicly listed regional natural gas company, and its partner Crescent Petroleum, the oldest private oil & gas company in the Middle East, together with their partners in the Pearl Petroleum Consortium have announced that cumulative production from Khor Mor, Iraq's largest non-associated gas field, has reached 500 million barrels of oil equivalent (Mmboe), highlighting the level of development and growth from the Khor Mor field in the Kurdistan Region of Iraq (KRI) since 2008.

The Khor Mor plant operated by the companies provides the fuel for around 75% of the KRI's electricity generation, enabling affordable power for more than 6 million Iraqis in the KRI and other governorates of Iraq. With total investment to date exceeding US$3.5 billion, the operations have created more than 20,000 direct and indirect jobs in the region.

This production milestone coincides with the announcement of a series of development initiatives enabling considerable future growth.

Khor Mor field development

The companies announced that daily production from Khor Mor in early March reached 525 MMscfd of natural gas, a growth of 75% since 2017, in addition to 15,200 b/d of condensate, and 1,070 t/d of LPG.

The partners also announced that development of the KM-250 project, which promises to boost capacity by a further 50%, has accelerated the expected completion to Q1 2026. Progress on the US$1 billion expansion project, which includes US$250 million in financing from the US Development Finance Corporation (DFC), has advanced in recent months through fast-track simultaneous project construction and commissioning activities, enabling the company to cut the overall project schedule by several months.

Building on the potential of the Khor Mor field, the consortium has also commenced work on an appraisal strategy to unlock Khor Mor's additional significant hydrocarbon potential and plan the next phases of the field's development.

Chemchemal investment decision

Building on the immense potential of the Chemchemal field, the Pearl Petroleum partners also announced commencement of activities to appraise the Chemchemal Cretaceous reservoir and initiate production of up to 71 MMscfd during 2026. The partners have committed US$160 million to drill three wells, install an extended well test (EWT) facility, and construct associated enabling infrastructure.

Financing options under consideration

In light of these recent achievements and progress, Pearl Petroleum is considering further financing options and has engaged DNB Markets, part of DNB Bank ASA, and Pareto Securities AS as Joint Lead Managers and Bookrunners to arrange a series of fixed-income investor meetings. Subject to market conditions and acceptable terms, a new senior secured bond issue with a tenor of 5 years may follow. The proceeds will be used to finance these near-term growth opportunities and for general corporate purposes.

Commenting on the announcements, Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said:

"We are at the start of an exciting new chapter for Pearl Petroleum with the imminent completion of the KM-250 expansion project, initial appraisal and development of the Chemchemal Field and an appraisal strategy to further unlock hydrocarbon potential of the Khor Mor Field. This work will further enhance the energy sector and economy of the Kurdistan Region and all of Iraq."

Richard Hall, CEO of Dana Gas, added:

"The KM-250 completion which we are now confident of accelerating to take place in Q1 2026 will transform our business, enabling the next major phase of expansion. Our ongoing positive discussions with the financial community reflect the increasing respect we are being afforded as a major regional energy company."

Pearl Petroleum was founded in 2009 as a consortium with Dana Gas and Crescent Petroleum as joint operators with a 35% equity share each, and with OMV, MOL, and RWE subsequently joining the consortium with a 10% share each. In the ensuing years, the project has delivered uninterrupted, affordable energy at scale to the KRI, making a considerable impact on the region's economy, society, and environment.

With over 80% local employment in operations, including in management positions, Pearl has has enabled fuel cost savings for the government and made a considerable positive contribution to the local economy. The natural gas produced in Khor Mor has also avoided 59 million tonnes of CO2 emissions to date by substituting oil and diesel with cleaner burning natural gas for power generation.

Pearl Petroleum remains committed to maintaining carbon neutrality having reduced total GHG emissions by over 20% in 2024 to 200 kTCO2e, while reducing overall energy consumption by 5%, bringing its total carbon intensity to 4.4kg CO2/Boe. This is among the lowest in the industry, supplemented by offsets of the remaining emissions to achieve carbon neutrality across operations.

(Source: Dana Gas)

By John Lee.

The London School of Economics (LSE)'s Middle East Centre has hosted a talk by Ahmed Tabaqchali, exploring the economic and financial interactions of the Iraqi economy with the outside world, particularly the use of the dollar in relation to Iran and the US.

While the US' Iraq policy is still fluid, there have been signs that America's 'maximum pressure campaign' towards Iran will have spillover effects in Iraq, with the Trump administration viewing policy towards Iraq solely through the lens of a perceived threat of Iranian dominance in the country. Iran's economic footprint in Iraq, both perceived and real, will be an issue for Iraq and its relationship with the US and the West.

According to Tabaqchali's data, in 2024 China imported about 95 percent of Iran's 1.55 mbpd of oil exports, worth $36 billion; $3bn of LPG, and $11 billion in other imports, for a total of $50 billion, using an extensive global financial web. In the same period, Iraq imported $3 billion in gas and electricity (which Iran does not receive and which are governed by waivers for humanitarian goods), and $7.7 billion of private sector imports. "So," argues Tabaqchali, "which is the lung here?"

The session, chaired by Toby Dodge, ended by a lively 40 min Q&A session.

Click here to view the full discussion.

(Source: LSE)

By John Lee.

Iraq's Minister of Electricity, Eng. Ziyad Ali Fadel, has addressed key energy issues in interviews with Al Arabiya and Al Hadath, outlining government efforts to secure power supply and mitigate potential summer shortages.

Key points include:

• The halt of exemptions has affected 800 MW of electricity imports from Iran, impacting Diyala, Maysan, and Basra.
• The Ministry has not received official notification regarding the suspension of Iranian gas imports, with discussions ongoing.
• Alternative measures include fuel oil (kaz), regional power grid connections, solar power projects, and the establishment of a floating LNG terminal.
• Turkmenistan is being considered as an alternative gas supplier, as it is not subject to sanctions.
• A floating platform for LNG imports will be installed in the Gulf by June to supply power plants.
• Turkey has agreed to double electricity supply via the Iraq-Turkey interconnection to 600 MW starting mid-May.
• Iraq-Kuwait grid connection is 90% complete, with landmine clearance in Fao delaying finalization.
• Renewable energy projects under development:
  • 1,000 MW solar by TotalEnergies (Basra)
  • 750 MW by PetroChina (Muthanna)
  • 500 MW by Bilal Iraq (Babel & Karbala)
  • Additional 15,000 MW planned using combined-cycle and solar technologies.
• Iraq is shifting towards 15,000 MW of crude oil-based power generation, similar to Saudi Arabia's model.
• Major agreements planned:
  • 24,000 MW with GE (USA)
  • 10,000 MW with Siemens (Germany)
• Iraq is executing its largest-ever power grid expansion, upgrading transmission lines and substations to stabilize electricity supply.

(Source: Ministry of Electricity)

By John Lee.

Iraq's Prime Minister, Mohammed S. Al-Sudani, oversaw the signing of a major agreement between the Iraqi Ministry of Oil and BP for the development and production of four key oil fields in Kirkuk. The contract covers the Kirkuk field (Baba and Avana domes), Bai Hassan, Jambur, and Khabbaz.

The signing ceremony on Wednesday was attended by Oil Minister Hayan Abdul Ghani and BP's Chief Executive Officer, Murray Auchincloss.

The agreement includes a comprehensive rehabilitation plan aimed at increasing crude oil production to 420,000 barrels per day and utilizing associated gas through the North Gas Company (NGC) to produce 400 million standard cubic feet per day. Additionally, a 400-megawatt power plant will be constructed to support Iraq's electricity needs.

This initiative is expected to curb gas flaring, improve energy sustainability, and create job opportunities in the energy sector.

(Source: PMO)

By John Lee.

Iraq's Prime Minister Mohammed S. Al-Sudani chaired a special meeting of the National Renewable Energy Team on Monday to review progress on the country's renewable energy strategy.

The Prime Minister instructed that renewable energy projects officially launch by summer, urging the acceleration of procedures and private sector engagement. The National Renewable Energy Team will coordinate efforts with the Supreme Authority for Coordination between Governorates, including oversight of billing and collection regulations.

Key initiatives discussed included:

• Solar power conversion for government buildings.
• Smart energy solutions for the Al-Budur residential complex.
• Renewable energy installations in 100 schools and 5 health centers.
• A national conference to launch fast-track smart energy solutions.

The meeting granted initial approval for two 20-megawatt solar power stations in Al-Rusafa and Al-Karkh, while the Ministry of Electricity will install two 3-megawatt solar units at the Army Canal site as part of Iraq's broader renewable energy drive.

(Source: PMO)

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani met with Turkish Minister of Energy and Natural Resources, Alparslan Bayraktar, to discuss energy cooperation and economic ties.

Al-Sudani reiterated Iraq's commitment to collaboration with Turkish companies, particularly in the energy sector, including cross-border electricity interconnection and cooperation on the Strategic Development Road Project. He also stressed the need for enhanced water management cooperation to secure stable inflows to Iraq.

The Prime Minister reaffirmed ongoing efforts to resume oil exports from the Kurdistan Region of Iraq (KRI), noting that discussions with international oil companies are underway to resolve technical issues preventing exports.

Bayraktar expressed Türkiye's interest in expanding energy ties, including refinery and petrochemical projects, and emphasized the importance of exporting Iraqi oil through the Ceyhan port. He also highlighted investment opportunities within the Strategic Development Road Project.

Full statement from the Media Office of the Prime Minister:

Prime Minister Mohammed S. Al-Sudani Meets Turkish Minister of Energy and Natural Resources

Prime Minister Mohammed S. Al-Sudani met on Monday with the Turkish Minister of Energy and Natural Resources, Mr. Alparslan Bayraktar.

During the meeting, Prime Minister Al-Sudani reaffirmed the Iraqi government's commitment to strengthening joint cooperation with Turkish companies across various sectors, particularly in the energy sector, where Iraq is working to diversify its energy sources. This includes efforts to increase electricity imports through cross-border interconnection and cooperation on the Strategic Development Road Project. Additionally, he emphasized the importance of reinforcing cooperation on water management to ensure stable and regular water inflows to Iraq.

The Prime Minister also highlighted the government's extensive efforts to resume oil exports from the Kurdistan Region of Iraq (KRI), stating that negotiations are ongoing with international oil companies operating in the KRI to resolve technical issues necessary for restarting exports.

For his part, Minister Bayraktar expressed Türkiye's keen interest in further expanding cooperation with Iraq across various fields, including refinery projects and petrochemical industries. He also underscored the importance of exporting Iraqi oil from Basra through Türkiye's Ceyhan port, and discussed the Strategic Development Road Project, emphasizing the promising investment opportunities it offers.

(Source: PMO)

By John Lee.

Prime Minister Mohammed S. Al-Sudani chaired a high-level meeting on Sunday to advance the smart solar energy project, with participation from the Minister of Electricity, the National Smart Solutions and Renewable Energy Team, several governors, and prime ministerial advisers.

Key discussion points included:

• Solar energy adoption and smart metering technologies.
• Private sector engagement in smart energy projects under local government supervision.
• Technical contracts for project implementation, to be submitted to the Council of Ministers for approval.

Prime Minister Al-Sudani instructed governors to accelerate land allocation for private-sector projects and compile a list of interested companies and investors.

The Ministry of Electricity was tasked with drafting technical contracts to ensure efficiency and regulatory compliance.

(Source: PMO)

By John Lee.

The National Team for Renewable Energy Projects and Energy Efficiency at the Iraqi Prime Minister's Office has invited "specialized companies in the field of solar energy project implementation" to participate in a conference.

The conference will take place at the Training and Energy Research Directorate of the Ministry of Electricity on Thursday, March 13, 2025, at 12:00 PM.

The event aims to present the technical requirements for executing projects related to environmentally friendly government buildings.

Local and international specialists from relevant companies are encouraged to attend and bring their company profiles and credentials for participation.

(Source: PMO)

By John Lee.

Iraq's Ministry of Oil has signed an initial agreement with BP to develop four oilfields in Kirkuk.

The agreement, signed by North Oil Company (NOC) and North Gas Company (NGC), covers the development of the Avana and Baba domes of Kirkuk, Bai Hassan, Khabbaz, and Jambur fields.

Minister of Oil Hayan Abdul Ghani highlighted the importance of this deal in enhancing state revenues and increasing national oil and gas output. He noted that after a period of stagnation, the project would contribute to higher oil production and greater gas utilisation, particularly for electricity generation.

Senior officials from the Ministry of Oil, including deputies for extraction, gas, and refining, as well as directors from Basra Oil Company (BOC), Midland Oil Company (MdOC), and North Gas Company, attended the signing ceremony.

The contract also includes rehabilitation and expansion of gas facilities at North Gas Company, further supporting Iraq's energy sector development.

(Source: Ministry of Oil)

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani chaired a meeting on Sunday to assess summer electricity supply plans and the progress of oil sector projects.

The Minister of Electricity outlined strategies to ensure stable power supply, including fuel station operations, while the Minister of Oil detailed fuel supply plans for power plants, including floating and mobile platforms under review.

Key decisions included:

• Completion of a gas transmission line from Basra's power plants to a floating platform.
• Approval of a new 40km gas pipeline from Al-Mahmoudiya to Bismayah to ensure full-capacity operation of the Bismayah power plant.
• Assessment of fuel oil supply, storage, and import logistics.

The meeting also reviewed strategic oil projects, including:

• Basra-Haditha oil pipeline.
• Seawater supply pipelines and treatment plant at Basra Oil Company (BOC).
• Offshore pipeline expansions (third, fourth, and fifth phases).
• Artawi [Ratawi] gas complex (Phase II).
• Mansouriya, Akkas, and Faihaa [Block 9] field developments.
• FCC fluid catalytic cracking unit project.
• Fifth and sixth licensing rounds.

The meeting assessed progress on government program projects, with an update on execution rates as of February 2025.

(Source: PMO)