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Iraq Shuts Down Khor Mor Gas Field Amid Security Threats

Created at 16 Jul · 5:31 PM1 source↑ Market-relevant
IN SHORT

Dana Gas suspended operations at Iraq's Khor Mor gas field due to security threats, impacting electricity supply in the Kurdistan Region. The field's closure is expected to reduce power generation capacity by up to 3,000 megawatts.

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Key Numbers

8.2 trillion cubic feetKhor Mor gas field reserves
35%Dana Gas and Crescent Petroleum stake in Pearl Petroleum
30%OMV AG, MOL Group, DNO stake in Pearl Petroleum
$1.1 billionKM250 expansion investment
750 Million Standard Cubic Feet per DayKhor Mor boosted production capacity
3,000 megawattsExpected reduction in power generation capacity
80%Khor Mor's share of Kurdistan's electricity generation

Who's Involved

Dana Gas
UAE-based operator suspending Khor Mor gas field operations
Kurdistan Regional Government (KRG)
Coordinated with operator on facility shutdown
Sulaymaniyah authorities
Coordinated with operator on facility shutdown
Iraqi federal government
Coordinated with operator on facility shutdown
Pearl Petroleum
Consortium operating the Khor Mor gas field
OMV AG
Shareholder in Pearl Petroleum
MOL Group
Shareholder in Pearl Petroleum
DNO
Shareholder in Pearl Petroleum
Iraq Shuts Down Khor Mor Gas Field Amid Security Threats

↳ Why This Matters

The shutdown of Iraq's Khor Mor gas field exacerbates the country's persistent energy deficits, leading to severe power shortages in the Kurdistan Region and potentially impacting national energy supply, while highlighting ongoing security risks in the region.

Key facts

  • Dana Gas suspended operations at the Khor Mor gas field in Iraq due to credible security threats.
  • The closure will significantly reduce electricity generation in the Kurdistan Region by up to 3,000 megawatts.
  • The Khor Mor field is Iraq's largest producing non-associated gas field with reserves of 8.2 Tcf.
  • Pearl Petroleum, a consortium including Dana Gas and Crescent Petroleum, operates the field.
  • The facility has previously been targeted by armed groups, leading to production halts.

United Arab Emirates' Dana Gas has suspended operations at its Khor Mor gas field in Iraq due to credible security threats, a move coordinated with regional and federal authorities to ensure safety. This shutdown is expected to severely impact electricity supply in the Kurdistan Region, potentially reducing generation capacity by up to 3,000 megawatts and limiting power availability to a few hours daily.

The Khor Mor field, operated by Pearl Petroleum—a consortium majority-owned by Dana Gas and Crescent Petroleum—is a vital energy asset, supplying over 80% of the Kurdistan Region's electricity. The field holds an estimated 8.2 trillion cubic feet of natural gas and has previously faced security challenges, including rocket and drone attacks, which have caused production halts and blackouts.

The KM250 expansion project had previously boosted the plant's capacity to 750 Million Standard Cubic Feet per Day. While the output primarily fuels local power networks, surplus gas is intended for federal power plants in Iraq, aiming to alleviate Baghdad's energy deficits and reduce reliance on imported Iranian gas. Dana Gas has assured stakeholders that the plant is ready to resume operations once security conditions improve.

Frequently asked questions

Operations were suspended due to credible security threats amid a volatile regional situation.

It is expected to reduce the Kurdistan Region's electricity generation capacity by up to 3,000 megawatts, limiting power to a few hours daily.

The field is operated by Pearl Petroleum, a consortium including Dana Gas and Crescent Petroleum.

The field holds an estimated 8.2 trillion cubic feet of natural gas.

What Happens Next

01Resumption of operations once security conditions improve.

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Cadence
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How It Developed

Dana Gas suspended operations at the Khor Mor gas field in Iraq due to security threats.
The decision was made in coordination with Iraqi and regional authorities to protect personnel and infrastructure.
The Khor Mor field supplies over 80% of the Kurdistan Region's electricity.
The shutdown is expected to reduce power generation capacity by up to 3,000 megawatts.
The field operator stated the plant is ready to resume operations once conditions improve.

Sources

T1
Iraq Shuts Down Khor Mor Gas Field Amid Security ThreatsOilPrice.com

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