Iraq’s Khor Mor gas field, the country’s largest non-associated gas field, has resumed operations after it shut down following a recent drone attack. Last week, a rocket struck a storage tank at the Khor Mor site, stopping production and triggering widespread power outages.
The drone attack was one of the largest since terrorist attacks began in July, cutting regional production by ~150,000 barrels per day. Whereas no terrorist group has claimed responsibility for the latest attack, a military expert has pointed fingers at Iraq’s Popular Mobilization Forces (PMF). Formed in 2014 to fight ISIS, the PMF is an umbrella group of mostly Shia militias, but it also includes some Sunni and other minority groups. Despite being legally incorporated into the state security apparatus, some factions remain highly autonomous and maintain strong ties to Iran.
Back in October, Khor Mor gas field operator Dana Gas announced that the giant field will increase output by 50% to 750 million standard cubic feet per day (MMscf/d) after the company delivered project KM250 eight months ahead of schedule. KM250 will also produce 7,000 barrels of condensate per day and 460 tonnes per day of LPG, supplementing the current production of 15,200 bbl/d of condensate and 1,070 t/d of LPG.
Located in the Kurdistan Region of Iraq (KRI), KM250 will bolster power generation and industrial growth across the KRI, underpinning the Kurdistan Regional Government’s initiative to deliver 24-hour electricity, while boosting power supply to other regions of Iraq.
Iraq’s energy sector is currently going through a renaissance. The Kurdistan Region has exported ~2.5 million barrels of crude since flows resumed on September 27, two-and-a-half years after they were suspended. Exports came to a halt in early 2023 after the International Chamber of Commerce (ICC) ruled that Turkey had violated a 1973 treaty by buying Kurdish crude without Iraq’s consent. Meanwhile, French oil and gas multinational, TotalEnergies (NYSE:TTE), has started the Gas Growth Integrated Project (GGIP), a multi-energy initiative in Iraq valued at $27 billion, after reaching an agreement with the government of Iraq in 2024 to start the long-delayed energy project.
By Alex Kimani for Oilprice.com
More Top Reads From Oilprice.com
- Shell and Equinor JV Launches UK’s Top North Sea Producer
- Private Equity Pours $145 Billion Into UK Renewable Energy
- CPC Terminal Hit by Drone but Kazakh Oil Exports Continue To Flow
