Khor Mor Gas Field Reaches Record 525 MMscfd Production, Marking 75% Growth Since 2017

Peregraf

Pearl Petroleum Consortium, led by Dana Gas and Crescent Petroleum, has announced a major production milestone at Khor Mor, Iraq’s largest non-associated gas field in the Kurdistan Region. Daily production in early March soared to 525 million standard cubic feet per day (MMscfd)of natural gas—an increase of 75% since 2017—along with 15,200 barrels per day (b/d) of condensate and 1,070 tonnes per day (t/d) of LPG.

This significant boost in output reinforces Khor Mor’s vital role in supplying around 75% of Kurdistan’s electricity needs, providing affordable energy for over six million Iraqis and driving economic development. Since production began in 2008, cumulative output has surpassed 500 million barrels of oil equivalent (MMboe), while total investment has exceeded $3.5 billion, creating more than 20,000 jobs in the region.

Accelerating the KM-250 Expansion Project

In tandem with its production surge, Pearl Petroleum is expediting the KM-250 project, a $1 billion expansion that will increase capacity by 50% by early 2026. The development, which includes $250 million in financing from the U.S. Development Finance Corporation (DFC), has advanced significantly through fast-track construction and commissioning efforts, cutting months off the project timeline.

Additionally, the consortium has launched an appraisal strategy to unlock Khor Mor’s untapped hydrocarbon potential, laying the groundwork for further expansion in the coming years.

Chemchemal Field Development & New Financing Plans

Beyond Khor Mor, Pearl Petroleum is moving forward with the Chemchemal Field, committing $160 million to appraisal activities that could see production of 71 MMscfd by 2026. To support these growth initiatives, the company is exploring financing options and considering a new senior secured bond issue with a five-year tenor, with investment banks DNB Markets and Pareto Securities ASleading discussions with potential investors.

Energy Expansion with a Commitment to Sustainability

Pearl Petroleum remains focused on environmental sustainability, having cut greenhouse gas (GHG) emissions by over 20% in 2024 and reduced total energy consumption by 5%, achieving one of the lowest carbon intensities in the industry. The company continues to substitute oil and diesel with cleaner-burning natural gas, avoiding 59 million tonnes of CO2 emissions since operations began.

Commenting on these milestones, Majid Jafar, CEO of Crescent Petroleum, said: “We are at the start of an exciting new chapter for Pearl Petroleum with the imminent completion of the KM-250 expansion project, the initial Chemchemal Field development, and an appraisal strategy to unlock Khor Mor’sadditional hydrocarbon potential. This work will further enhance the energy sector and economy of Kurdistanand all of Iraq.”

With ongoing developments at Khor Mor and Chemchemal, Pearl Petroleum is set to strengthen energy security, expand production, and bolster economic growth in the Kurdistan Region and beyond.

Dana Gas, based in the UAE, operates the Khor Mor field, which has been the target of several attacks in the past two years. One of the deadliest incidents took place on April 26, 2024, when two drones struck the site, killing four Yemeni workers.

As the largest natural gas producer in the Kurdistan Region, Khor Mor supplies power plants in Erbil, Chamchamal, and Bazian, providing most of the gas used for heating and cooking in the region.