Dana Gas has terminated its contract with Enerflex for the Khor Mor gas expansion project in Iraqi Kurdistan due to delays in meeting project deadlines. Pearl Petroleum, the operator, will take over the project to ensure its timely completion, expected by the end of 2024.
Contract Termination Due to Delays
Dana Gas has officially terminated its engineering, procurement, and construction (EPC) contract with Canadian company Enerflex for the Khor Mor gas expansion project in the Kurdistan Region. The decision, made on August 20, 2024, follows significant delays attributed to Enerflex’s inability to meet project deadlines, which impacted the overall progress and threatened the project’s timeline and goals. Pearl Petroleum Co. Ltd., the operating company in which Dana Gas holds a significant stake, issued the termination notice to Enerflex on August 19, 2024, citing the need to protect the project’s interests.
Impact on Project Completion
The termination of the Enerflex contract has transferred full responsibility for the Khor Mor gas expansion project to Pearl Petroleum, a consortium that includes Dana Gas and UAE-based Crescent Company, collectively owning 70% of the gas field. The remaining 30% is held by three European energy companies. Pearl Petroleum has already taken measures to ensure the project’s completion, which is now expected by the end of this year. The expansion aims to increase the gas production capacity of the Khor Mor field from 500 million cubic feet to 750 million cubic feet per day.
Importance of the Khor Mor Gas Field
Located in the Chamchamal District of Sulaimani province in the Kurdistan Region, the Khor Mor gas field is one of the largest in Iraq, covering 135 square kilometers. It holds an estimated 8.2 trillion cubic feet of gas reserves and supplies 67% of Kurdistan’s electricity needs. However, production has been disrupted by repeated attacks, including a deadly drone strike in April 2024 that killed four workers. Despite these challenges, Dana Gas and Pearl Petroleum remain committed to completing the project and ensuring it meets the region’s energy demands.
For KfutureMedia: Aland Faraidun
