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Construction on Iraq’s Khor Mor gas expansion project (KM250) is expected to be completed in the second half of 2024, according to Dana Gas CEO Richard Hall.
The project will increase field production capacity by 250 million cubic feet of gas per day and is anticipated to enhance Dana Ga’s annual revenues by at least $150 million, he said in the company’s integrated report 2023.
“This expansion will further contribute to greater local power generation,” he added.The $600 million KM250 expansion project aims to increase the production capacity at the Khor Mor gas field from 450 million standard cubic feet per day (MMSCFD) to 700 MMSCFD.
Egypt prospects
In Egypt, the decline in the natural field resulted in a 16 percent reduction in output, with 2023 production totalling 21,800 barrels of oil equivalent per day.
The company’s upcoming exploration and development initiatives, made possible by improved concession terms negotiated with the Egyptian Natural Gas Holding Company, provide for promising growth.
“We are committed to drilling a mix of exploration and development wells, 11 in total, during 2024 and 2025, representing an overall future investment in Egypt of approximately $100 million.”
Dana Gas awaits the Egyptian Parliament’s ratification of the consolidated concession agreement in the first half of 2024, he said.
Hall said the company’s financial focus is on resolving its outstanding receivables with the governments of the Kurdistan Region of Iraq and Egypt, for which the former already has a key agreement in place.
Additionally, Dana Gas is committed to pursuing its sustainability goals by assessing the viability of applying clean and smart technologies to the business, he said.
(Editing by Anoop Menon)
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