About Pearl Petroleum

Project Details

Pearl Petroleum has been a reliable partner to the KRG supplying gas to local power plants in an uninterrupted manner since 2008. Its gas production field is connected to 5 major power stations and currently represents approximately 75% of official power generation in the KRI.

The first stage of the Khor Mor field development involving the hook up, testing and re-commissioning of existing gas wells, acquiring 2D seismic, installing gas separation and treatment facilities and installation of 180kms of pipeline was completed in a record time of 15 months and first gas deliveries to Erbil commenced in October 2008 with the help of an Early Production Facility (EPF).

The second stage which involved the installation of a 2-train liquid petroleum gas (LPG) plant was completed in 2011.

Pearl Petroleum successfully implemented a 65% gas production increase in 2018 through a debottlenecking project and a bypass project enhancement in the summer of 2020, amidst pandemic restrictions and without any major disruptions to gas supplies.

Currently, Pearl Petroleum is supplying up to 520 million cubic feet of sales gas per day (MMScf/day) of gas to the KRG destined to four local power stations (Erbil, Sulimania, Bazian and Khurmala); up to 15,000 barrels per day of condensate and approximately 1,100 tonnes per day of LPG (both currently sold in the private sector).

Another Gas Sales Agreement (“GSA-2”) was signed with the KRG on 19th February 2019 to enable an increase in gas production from Khor Mor of 250 MMScf/day. The “KM250 project” commenced in 2020 involves the drilling of new wells and the addition of two new production trains. When complete, the KM250 project will increase total production from the current 520 MMScf/day to 770 MMScf/day.

Future Plans

While the construction phase of the project generated significant direct and indirect benefits to the KRI’s economy, the full economic and social impact will be realized with further development of the Khor Mor and Chemchemal fields, including increased supply of electricity to support the growth of the local economy. In addition to increasing gas supply for domestic market and industry use, Pearl Petroleum is also developing a substantial export scheme to neighboring markets as well as markets further afield.

The domestic market has a clear and significant demand for gas and will be the focus of the near to medium-term horizons of the Khor Mor development. In the short term, gas produced from Khor Mor will alleviate the current shortage of gas, primarily for power generation in the Iraqi market and to also displace Heavy Fuel Oil usage for industrial users.

Pearl Petroleum is also evaluating the development of the “sleeping giant” Chemchemal field, also intended to primarily satisfy the domestic market.

Once the domestic market is satisfied, Pearl Petroleum has plans to develop export schemes to neighbouring gas markets and to markets further afield, making the KRI a “gas hub”.