Pearl secures $250mn loan for KRI gas project
Pearl Petroleum, the consortium led by UAE's Dana Gas and Crescent Petroleum, has signed a $250mn financing agreement with the US International Development Finance Corporation (DFC) for its gas project in the Kurdistan Region of Iraq (KRI), Dana said on September 8.
Pearl will use the funds to support the gas expansion works currently underway at the Khor Mor gas plant. The proceeds from the seven-year DFC financing will support an increase in gas production capacity by 50% to 690mn ft3/day. The project's overall cost is $630mn and the remaining financing has already been secured through a regional bank facility and the EPC contractor, Dana said.
KM-250 is the first stage of a two-train expansion project at Khor Mor that aims to boost total production capacity to 1bn ft3/day. Work resumed in April 2021 after onsite construction was halted last year due to the COVID-19 pandemic and is currently on track for completion by April 2023.
Total investment by Pearl Petroleum at Khor Mor to date exceeds $2.1bn with total cumulative production of over 341mn barrels of oil equivalent in natural gas and liquids. The gas has been supplied to power plants in Erbil, Chemchemal and Bazian.
In April 2007, Dana and Crescent entered into an agreement with the government for exclusive rights to appraise, develop, produce, market, and sell petroleum from the Khor Mor and Chemchemal fields in the KRI.