Pearl Petroleum, a consortium led by Sharjah-based Crescent Petroleum and Dana Gas that operates in Iraq's Kurdistan, has signed a 10-year gas sale agreement with the regional government to supply and sell additional gas quantities that are to be produced this year.
The consortium is expected to boost delivered gas output from the Khor Mor Field by 80 million cubic feet of sales gas per day before the end of 2018 from the current level of 305 million cubic feet per day, Abu Dhabi-listed Dana said in a statement on Wednesday.
The deal builds on improved ties with the Kurdistan Regional Government, which signed a $ 1 billion settlement agreement with the consortium last year, helping Dana Gas boost its 2017 profit. Under the terms of the settlement, the KRG agreed to pay the Pearl Consortium - consisting of Dana Gas, its parent Crescent Petroleum, OMV of Austria, Germany's RWE and Hungary's MOL - a sum of $ 600 million, together with a $ 400m payment to be allocated towards the consortium's further investment in the region's gasfields.
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The consortium is expected to boost delivered gas output from the Khor Mor Field by 80 million cubic feet of sales gas per day before the end of 2018 from the current level of 305 million cubic feet per day, Abu Dhabi-listed Dana said in a statement on Wednesday.
The deal builds on improved ties with the Kurdistan Regional Government, which signed a $ 1 billion settlement agreement with the consortium last year, helping Dana Gas boost its 2017 profit. Under the terms of the settlement, the KRG agreed to pay the Pearl Consortium - consisting of Dana Gas, its parent Crescent Petroleum, OMV of Austria, Germany's RWE and Hungary's MOL - a sum of $ 600 million, together with a $ 400m payment to be allocated towards the consortium's further investment in the region's gasfields.
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