US Contractors Might Retract To Help Iraq’s Gasfield Expansion Plans
Iraq– One the Iranian natural gas facilities have yet again stalled the plans of expanding its Khor Mor fields, leading to doubling production in a region desperately in need of more gas to generate electricity and end power blackouts.
Iraq is not only reeling under turmoil from its political uncertainty, but its struggle to increase its own power needs and go into self sufficiency has now seen the US contractors retreating into obscurity.
Earlier on, after much effort, the same project that was meant 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.
As workers from the Texan company Exterran Corp. braved the attacks and came back last month to resume work, it is suspected that Iranian attacks of two more rockets in July, forcing them to retreat again with no hope of their return.
It is worth noting that Khor Mor is one of the biggest gasfields in Iraq and their expansion plans only aims to double production for an area that is desperately in need for more gas, reeling under almost daily power blackouts.
The expansion project is partly funded through a $250 million financing agreement with the US 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.