Crescent & Dana Gas Achieve 500 MMboe Production at Khor Mor Field
KM-250 expansion project accelerates for completion and commencement by Q1 2026, to boost capacity over 50%.
Dana Gas and Crescent Petroleum, in partnership with the Pearl Petroleum Consortium, have reached a significant production milestone at Iraq's Khor Mor gas field. The cumulative production has now surpassed 500 million barrels of oil equivalent (Mmboe), underscoring the rapid development of the Kurdistan Region of Iraq's (KRI) largest non-associated gas field since operations began in 2008.
Powering Millions with Affordable Energy
The Khor Mor facility plays a crucial role in electricity generation across the KRI, supplying approximately 75% of the region’s power needs. This ensures affordable energy for over 6 million Iraqis across the region and other parts of Iraq. With an investment exceeding $3.5 billion to date, the operations have also significantly contributed to employment, creating over 20,000 direct and indirect jobs.
Plans for Further Expansion
This major production milestone comes alongside a series of upcoming development projects aimed at further increasing output.
Growth in Khor Mor's Daily Production
As of early March, Khor Mor’s daily gas production has surged to 525 million standard cubic feet per day (MMscfd), reflecting a 75% increase since 2017. Additionally, the field produces 15,200 barrels per day of condensate and 1,070 tons per day of LPG.
The partners have also accelerated the development of the KM-250 expansion project, which is now expected to be completed by the first quarter of 2026. This $1 billion expansion, supported by $250 million in financing from the U.S. International Development Finance Corporation (DFC), is progressing rapidly through an expedited construction and commissioning strategy, significantly reducing the overall project timeline.
Unlocking Additional Hydrocarbon Potential
The Pearl Petroleum Consortium has initiated an appraisal strategy to explore the additional hydrocarbon reserves within the Khor Mor field. These efforts aim to guide the next stages of development, further enhancing production capacity.
Advancing the Chemchemal Gas Field
In addition to Khor Mor, Pearl Petroleum is investing in the Chemchemal gas field’s development. The consortium has commenced the appraisal of the Chemchemal Cretaceous reservoir, targeting an initial production capacity of up to 71 MMscfd by 2026. To support this effort, $160 million has been allocated for drilling three wells, setting up an extended well test (EWT) facility, and constructing essential infrastructure.
Exploring Financing Opportunities
To support these growth initiatives, Pearl Petroleum is actively exploring financing options. The company has engaged DNB Markets and Pareto Securities AS as Joint Lead Managers and Bookrunners to organize investor meetings. Depending on market conditions, a new five-year senior secured bond may be issued to fund expansion projects and other corporate needs.
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.”
A Legacy of Energy Security in KRI
Established in 2009, Pearl Petroleum is a consortium with Dana Gas and Crescent Petroleum as joint operators, each holding a 35% stake. OMV, MOL, and RWE joined later, each acquiring a 10% share. Over the years, the consortium has consistently delivered affordable energy, contributing to the economic and social development of the KRI.
Commitment to Sustainability
Pearl Petroleum has prioritized sustainability, with over 80% of its workforce being local, including management roles. The transition to natural gas at Khor Mor has already prevented 59 million tonnes of CO2 emissions by replacing oil and diesel for power generation.
In 2024, the company reduced total greenhouse gas emissions by over 20% to 200 kTCO2e while cutting overall energy consumption by 5%. With a carbon intensity of just 4.4kg CO2 per barrel of oil equivalent, one of the lowest in the industry, the company continues to work towards full carbon neutrality by offsetting remaining emissions.
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