Dana Gas PJSC, one of the Middle East's private-sector natural gas companies, and Crescent Petroleum, the region's oldest private oil and gas company, in their capacity as joint operators, have announced the completion of the rebuild of the LPG loading and dispatch facilities at the Kor Mor LPG Plant in the Kurdistan Region of Iraq.
The reconstruction and upgrading of the loading facilities was carried out at a cost of $15 million following an accident last year by a third party tanker operator, and incorporates the latest LPG loading safeguarding and control technology. The Kor Mor LPG Plant now has the capacity to produce up to 900 tonnes per day of LPG which is once again available to the Kurdistan Region and surrounding markets.
Total cumulative petroleum production by the companies in their major gas operations in the Kurdistan Region has now reached 88 million barrels of oil equivalent from continuous production since October 2008 with a total investment on behalf of the partners in excess of US$1 billion, following agreements signed with the Kurdistan Regional Government for the Kor Mor and Chemchemal blocks in April 2007. This makes it the largest investment and highest cumulative production in the Kurdistan Region's oil and gas sector.
"We are proud to be the largest investors and producers in the Kurdistan Region's oil and gas sector, and this represents the confidence of GCC investors in the policies of the Kurdistan Regional Government," said Mr. Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas. "The gas we produce has enabled billions of dollars of fuel cost savings for the government, and major economic and social benefits for the region as a whole. We look forward to further expansion of our investment and production in the region." Rashid Al-Jarwan, Executive Director and Acting CEO of Dana Gas, added, "The restoration of full LPG capacity is another important milestone in our operations, and we thank the Kurdistan Regional Government Ministry of Natural Resources for their cooperation, as well as our contractors, partners and staff." Some notable technical achievements of the project include achieving first gas in a record time of only 15 months, the installation of a 180km gas pipeline across challenging mountainous terrain that required the clearing of minefields, the installation of new gas processing plant drilling successfully to tertiary reservoir formations at depths of 2,300 meters, importing and installing over 64,000 tonnes of equipment in over 3,500 truck deliveries, with pipe material supplied from both China and Thailand, and a state-of-the-art gas processing plant imported from the USA.
During the project's construction phase, work opportunities were provided for over 2,000 Iraqi workers from all ethnic groups and sects, supported by expatriate workers from over 20 nationalities in the region and worldwide. Currently employing 460 full-time employees in the Kurdistan Region, the companies have successfully implemented a nationalisation programme, already achieving over 80% local staff ratio in their operations while implementing a major training programme.
Crescent Petroleum and Dana Gas have also implemented a corporate social responsibility programme to support local communities, including most recently the support pledged to 1,000 orphans in the Kurdistan Region in the Anfal areas, which were badly affected by conflict during the past decades, in partnership with the Barzani Foundation. In addition, the companies have provided school supplies, drinking water treatment, generators and fuel enabling 24 hour electricity for local villages, mobile medical units, and youth sports facilities. These initiatives assist local communities to improve their standard of living, health, well-being, security and stability.