Crescent Petroleum Completes Phase One of Khashim al Ahmer Seismic Survey
Development of the project will create thousands of jobs in Diyala and elsewhere in Iraq while reinforcing Iraq’s energy independence.
Crescent Petroleum, the region’s oldest and largest privately-owned oil and gas enterprise, has successfully concluded the initial phase of its advanced 3D seismic survey at the Khashim Ahmer block in Iraq’s Diyala Governorate. This milestone signals a major leap in unlocking the potential of a vast non-associated gas reservoir, aimed at bolstering Iraq’s energy self-sufficiency, enhancing electricity availability, and generating thousands of job opportunities in the region.
Cutting-Edge Technology Delivers First Detailed View of Reservoirs
The seismic campaign, delivered punctually and within budget, utilized state-of-the-art nodal seismic technology. This innovation has provided the first high-definition imaging of the subsurface reservoirs, laying the groundwork for accurate placement of appraisal wells in the next phase of development.
Accelerated Appraisal Drilling Program Set to Launch
With seismic data in hand, Crescent Petroleum is fast-tracking the next phase by awarding turn-key contracts for drilling the first appraisal wells. These operations are slated to begin later in the year, marking a swift transition from survey to field execution.
First Commercial Production Targeted with Major Investment
Following the appraisal phase, Crescent Petroleum will initiate the construction of necessary facilities to commence commercial gas production. The initial investment for this stage is projected between $200 million and $250 million, underlining the company’s commitment to early monetization of the field.
Long-Term Development Plans Exceed $1 Billion
Once the resource potential is confirmed, the project will move into full-scale development. This includes the drilling of additional wells, the construction of a central processing facility, and the development of infrastructure capable of handling up to 400 million standard cubic feet of gas per day and 80,000 barrels per day of condensate. The total investment in this phase is expected to exceed $1 billion.
“Reaching this milestone on time and budget underscores the commitment with which Crescent Petroleum is proceeding with our Iraq projects in Diyala and Basra, as we work to unlock the immense resources of the fields and contribute to Iraq’s economy and to the Iraqi government’s efforts to deliver improved services for the people,” said Abdulla al Qadi, Iraq Country Chair and MD Diyala and Basra at Crescent Petroleum.
“Crescent Petroleum has been a pioneer in the private sector development of natural gas in the MENA region, and we will bring our more than 54 years of expertise in delivering complex projects for shared value to the communities we serve and our stakeholders,” he added.
Economic and Social Impact in Diyala and Beyond
The company’s activities in Diyala will create thousands of direct and indirect jobs, giving a substantial boost to the local and surrounding economies. Additionally, the project will help the Iraqi government reduce fuel expenses and improve nationwide electricity services.
Strategic Expansion Through Long-Term Contracts
In 2023, Crescent Petroleum signed two 20-year agreements with the Midland Oil Company covering the Khashim Ahmer-Injana and Gilabat-Qumar fields in Diyala. A third agreement was also finalized with the Basra Oil Company for the exploration of the Khider Al-Mai field in Basra. The Iraqi Ministry of Oil activated these contracts between October and December 2023, propelling rapid development across the licensed blocks.
Future Exploration and Operational Leadership in Iraq
Crescent Petroleum is conducting exploration studies within the KAM block to assess and prioritize opportunities for its 2026 exploration campaign. These new blocks significantly extend the company’s operational presence across Iraq, building on its established activities in the Kurdistan Region. As a result, Crescent now holds the largest portfolio of private upstream assets in Iraq by both area and field count.
Commitment to Iraqi Workforce and Community Development
As development advances, Crescent Petroleum is focused on achieving a 90% Iraqi workforce participation rate. The company also plans to launch a series of social initiatives focused on vocational training, education, and public services to support the communities in Diyala and neighbouring regions.
Background: Award of the Khashm Ahmer-Injana Contract
The Khashm Ahmer-Injana (KAI) Contract Area was awarded to Crescent Petroleum Company International Limited (CPCIL) by Iraq’s Ministry of Oil in 2018 under the Fifth Petroleum Licensing Round. The Development and Production Contract was formally signed with Midland Oil Company (MdOC) on February 21, 2023, and officially came into effect on October 15, 2023.
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