Kurdistan eyes gas output hike: report

The Kurdistan Region of Iraq is poised for a major spike in natural gas output following a USD 1-billion settlement with the Pearl Petroleum consortium days ago, international media reported Monday.

The consortium between Dana Gas, Crescent Petroleum, OMV, MOL and RWE is planning to up its production from 9.4 mcm (330 mcf) per day to 22.7 mcm (800 mcf) per day in the next two years, Majid Jafar, the CEO of Crescent Petroleum and managing director of Dana Gas, told Reuters.

“The settlement demonstrated two things: first – the KRG has a publicly stated goal of clearing debts with upstream investors,” Jafar said. “And second – the contracts are solid and are respected, both of which are important for investors.”

New exploration could raise reserves, currently at 481 bcm (17 tcf), 3-5 times, he added, while output could eventually go up to 142 mcm-170 mcm (5 bcf-6 bcf) per day.

“Companies came and went in the Kurdistan region including some of the majors but it is a core group of the early pioneers who are driving the production and growth today,” Jafar said.