Attacks on Major Iraqi Gasfield Drive Out U.S. Contractors

IRBIL (Reuters) – A series of rocket attacks on a gasfield in northern Iraq has sent the U.S. contractors working on its expansion packing.
The project to expand the Khor Mor field operated by Pearl Consortium, majority-owned by Abu Dhabi’s Dana Gas and its affiliate Crescent Petroleum, was suspended at the end of June after three rocket attacks.
Workers from Texan company Exterran Corp. returned last month to resume work but two more rockets hit the site on July 25, forcing the company to leave again with no return date planned, industry and Kurdish government sources said.
Khor Mor is one of the biggest gasfields in Iraq and the expansion plan aims to double production in a region desperately in need of more gas to generate electricity and end almost daily power blackouts.
There was no serious damage from the attacks and existing operations have not been disrupted but the expansion has been suspended until security in the area is ensured, the sources said.
The expansion project is partly funded through a $250 million financing agreement with the U.S. International Development Finance corporation.
Exterran is the third contractor to demobilize since attacks started targeting the field on June 21, with two Turkish subcontractors, Havatek and Biltek, having already halted work.
Dana Gas declined to comment. Exterran, Havatek and Biltek did not respond to requests for comment.
Last year, the Kurdish government signed a contract with domestic energy company KAR Group to build a pipeline from Khor Mor via the regional capital Irbil to the city of Dohuk, close to the Turkish border, running parallel to an existing pipeline.
Delays could cost the debt-ridden Kurdistan Regional Government (KRG) a sizeable penalty and will leave Kurdish gas export plans on hold.
If the infrastructure is not ready by a May 2023 take-or-pay deadline, the Kurdish government will have to pay Dana Gas $40 million a month until it is ready, the government source said.IRBIL (Reuters) – A series of rocket attacks on a gasfield in northern Iraq has sent the U.S. contractors working on its expansion packing.
The project to expand the Khor Mor field operated by Pearl Consortium, majority-owned by Abu Dhabi’s Dana Gas and its affiliate Crescent Petroleum, was suspended at the end of June after three rocket attacks.
Workers from Texan company Exterran Corp. returned last month to resume work but two more rockets hit the site on July 25, forcing the company to leave again with no return date planned, industry and Kurdish government sources said.
Khor Mor is one of the biggest gasfields in Iraq and the expansion plan aims to double production in a region desperately in need of more gas to generate electricity and end almost daily power blackouts.
There was no serious damage from the attacks and existing operations have not been disrupted but the expansion has been suspended until security in the area is ensured, the sources said.
The expansion project is partly funded through a $250 million financing agreement with the U.S. International Development Finance corporation.
Exterran is the third contractor to demobilize since attacks started targeting the field on June 21, with two Turkish subcontractors, Havatek and Biltek, having already halted work.
Dana Gas declined to comment. Exterran, Havatek and Biltek did not respond to requests for comment.
Last year, the Kurdish government signed a contract with domestic energy company KAR Group to build a pipeline from Khor Mor via the regional capital Irbil to the city of Dohuk, close to the Turkish border, running parallel to an existing pipeline.
Delays could cost the debt-ridden Kurdistan Regional Government (KRG) a sizeable penalty and will leave Kurdish gas export plans on hold.
If the infrastructure is not ready by a May 2023 take-or-pay deadline, the Kurdish government will have to pay Dana Gas $40 million a month until it is ready, the government source said.