Cresent Petroleum Gas Projects Brings Benefits to Iraq

Dana Gas and Crescent Petroleum has announced the findings of the ‘Socio Economic Benefits Report’ undertaken by PwC on the impact of their combined investment in their Gas Project in the Kurdistan Region of Iraq in partnership with their Pearl Petroleum Consortium partners. The report concludes that this investment has and will continue to make a significant contribution towards the KRI’s economic and social development, in support of the Kurdistan Regional Government’s (‘KRG’) strategic policy and development priorities at regional, national and international levels.

The Consortium’s total investment of over US$1.2 billion thus far in the development of Kor Mor and Chemchemal fields represents one of the largest private sector investments in Iraq’s oil and gas sector, enabling 1,750 MW of affordable electricity supply for millions of people in the Kurdistan Region. It is also achieving over US$ 3.4 billion of recurring annual savings in fuel costs for the KRG for power generation, totaling close to $16 billion in savings from the start of production in 2008 calculated until the end of 2014. From an environmental perspective as well, the reduction of greenhouse gas emissions as a result of using cleaner natural gas at the power stations is valued at about $300 million per year.

The report also estimates that the Gas Project has, as a result of increased availability of electricity, enabled additional private sector investment in the KRI of over $30 billion with resulting significant GDP growth. The downstreameconomic impact is estimated by the report at between US$ 9.6 billion to $15.5 billion (40% - 66% of the 2011 GDP of KRI).

Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said: “Our investment and project have brought such important benefits to the government and people of the Kurdistan Region, in particular through fuel cost savings for affordable electricity and the additional investments and economic benefits that this has enabled. This professional report by an internationally reputed consulting firm has quantified these benefits, and we hope to expand our investments and production under our contract going forward for the benefit of the people of Kurdistan Region and all of Iraq.”

Patrick Allman-Ward, CEO of Dana Gas, added: “Despite the challenges we have faced including with payments, we have demonstrated our unwavering commitment to the Kurdistan Region and the KRG as a long-term partner through our continued operations and production, and we hope to build upon this in the years to come. The gas resources we have proven up through our appraisal have significant potential for further growth potential as well.”