Khor Mor Field Reaches 500 MMBoE, Powering 6 Million Iraqis With Sustainable Energy

Since 2008, the cumulative output from Iraq’s largest non-associated gas field, Khor Mor, has reached a milestone of 500 million barrels of oil equivalent (Mmboe). This achievement marks a significant level of development and growth in the Kurdistan Region of Iraq (KRI), spearheaded by Dana Gas and Crescent Petroleum, along with their partners in the Pearl Petroleum Consortium.

The Khor Mor field, under their operation, plays a crucial role in the KRI by supplying around 75% of the electricity needs for over 6 million Iraqis in the region and beyond, facilitated by an investment surpassing $3.5 billion and generating over 20,000 jobs.

The recent developments in the Khor Mor field are not just about reaching production milestones. In early March, daily production figures showed a remarkable increase to 525 MMscfd of natural gas, marking a 75% growth since 2017.

This surge in production also includes 15,200 barrels per day of condensate and 1,070 tons per day of LPG. These figures underscore the field's pivotal contribution to the local energy supply, which is vital for both economic stability and growth in the region.

Looking towards future enhancements, the partners have laid out ambitious plans for the Khor Mor field. They have accelerated the development of the KM-250 project, aiming to boost capacity by an additional 50%. This US$1 billion expansion, with $250 million financing from the US Development Finance Corporation (DFC), is on track for completion in the first quarter of 2026.

This advancement comes as a result of a streamlined approach, incorporating simultaneous construction and commissioning activities, which has trimmed several months off the overall project schedule.

The consortium's focus extends beyond immediate expansions. Initiatives are underway to appraise the Khor Mor field’s further hydrocarbon potential. This appraisal strategy is designed to unlock even more resources, ensuring the field's development continues to evolve in coming phases.

Parallel to these efforts, the consortium is making significant strides in the Chemchemal field. With an investment of US$160 million, activities have begun to appraise the Chemchemal Cretaceous reservoir, aiming to kick-start production of up to 71 MMscfd by 2026. This plan includes drilling three wells and setting up an extended well test (EWT) facility, alongside the construction of necessary infrastructure.

Pearl Petroleum's recent accomplishments and ongoing projects have paved the way for exploring additional financing options. The consortium has enlisted DNB Markets and Pareto Securities AS to organise a series of investor meetings focused on fixed-income opportunities. If market conditions are favourable, this could lead to a new senior secured bond issue with a five-year tenor. The funds raised would support near-term growth projects and general corporate needs.

Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, expressed enthusiasm for the future, stating, "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."

Since its inception in 2009, Pearl Petroleum has significantly impacted the KRI’s economy, society, and environment, thanks to its commitment to sustainable practices and local development. The consortium, which sees Dana Gas and Crescent Petroleum each holding a 35% equity share, with OMV, MOL, and RWE each owning 10%, has prioritised local employment, filling over 80% of its operational roles, including management positions, with local talent. This focus has not only fostered economic growth but has also contributed to considerable fuel cost savings for the government.

Furthermore, Pearl Petroleum’s operations have played a significant role in environmental protection. By substituting oil and diesel with cleaner natural gas for power generation, the consortium has avoided releasing 59 million tonnes of CO2 emissions.

In a continuing effort to mitigate its environmental impact, Pearl Petroleum reduced its total greenhouse gas emissions by more than 20% in 2024 to 200 kTCO2e and decreased overall energy consumption by 5%. This achievement has brought its total carbon intensity down to one of the industry's lowest at 4.4kg CO2/Boe, complemented by offsetting the remaining emissions to maintain carbon neutrality across its operations.

With substantial investments, a focus on sustainable practices, and a commitment to local employment and development, the consortium is set to continue making a significant impact on the region’s economy and environment.