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The Kurdistan Regional Government’s creative settlement with the Pearl Petroleum consortium in July 2017 is paying dividends ( MEES, 13 July ). Production capacity at the consortium’s Khor Mor gas field in the region’s southwest was this week boosted 30% from 305mn cfd to 400mn cfd through debottlenecking (see chart).
This was the result of the conclusion in August 2017 of a long-running and often acrimonious dispute ( MEES, 1 September 2017 ). Under this agreement, Erbil agreed to pay Pearl $600mn up front in addition to $400mn ‘dedicated exclusively’ for investment.
In return, Pearl pledged to increase output from its Khor Mor field in the region’s south west to 800mn cfd, a target that was subsequently raised to 900mn cfd by 2021. A gas sales agreement was reached in January under which the partners agreed to a 20% capacity increase from 305mn cfd to 360mn cfd ( MEES, 19 January ) which was then upgraded to 400mn cfd by the end of 2018 ( MEES, 13 July ). (CONTINUED - 458 WORDS)
DATA INSIDE THIS ARTICLE
|chart||Pearl Petroleum Partners (%)|
|chart||Pearl Petroleum Poised For Lift Off After 30% Capacity Boost To 400mn CFD (Mn Cfd)|