Pearl Petroleum

Pearl Petroleum
Industry Oil and Gas
Founded 2009
Area served
 Kurdistan region of Iraq
Website www.pearlpetroleum.com

Pearl Petroleum is a five-company consortium consisting of two Middle Eastern oil and gas companies, Dana Gas and Crescent Petroleum, in partnership with three major European energy companies: OMV, MOL, and RWE. Pearl Petroleum produces and develops natural gas assets in the Kurdistan Region of Iraq.[1][2]

History

Pearl Petroleum ownership (2018)

  Dana Gas (35%)
  Crescent Petroleum (35%)
  OMV (10%)
  MOL (10%)
  RWEST (10%)

In April 2007, Dana Gas entered into an agreement with the Kurdistan Regional Government of Iraq (KRG) for the appraisal and development of two major gas fields in the Kurdistan Region of Iraq: Khor Mor and Chemchemal. In October 2007, Dana Gas assigned 50% of its interest in the contract to Crescent Petroleum. Dana Gas and Crescent Petroleum began operations on the fields as joint operators and have remained as such ever since.[2]

The terms of the contract grant exclusive rights to appraise, develop, market, and sell petroleum products from the substantial Khor Mor and Chemchemal gas fields, and to provide natural gas supplies to fuel two major domestic electric generation plants being built in Erbil and Chemchemal as well as for local industries and export.[2]

On February 2009, Dana Gas and Crescent Petroleum transferred their participating interests to Pearl Petroleum Company Limited, a joint venture company owned equally by Dana Gas and Crescent Petroleum.[3] As of 2018, Pearl Petroleum's shareholders also include three major European utilities companies: OMV, Austria's largest listed industrial company; MOL, a Hungarian oil and gas company and Hungary's largest listed company; and RWE, the second largest electricity producer in Germany.[4]

In May 2009, a dispute arose between Pearl Petroleum (along with its shareholders) and the KRG concerning matters of the agreement, and failing satisfactory resolution, on 21 October 2013, Pearl Petroleum, along with Dana Gas and Crescent Petroleum, referred the dispute to arbitration at the London Court of International Arbitration for decision by an arbitral tribunal in London.[5]

Following the issuance of three partial final awards by the arbitration tribunal in Pearl Petroleum's favour on 30 June 2015, 27 November 2015 and 30 January 2017,[6][7] in August 2017, Pearl Petroleum and the KRG agreed to settle the arbitration.[8] Consequently, Pearl Petroleum and the KRG agreed to terminate the arbitration and related court proceedings; release all remaining claims between them; implement a mechanism for settlement of US$ 2,239 million awarded by the arbitration tribunal; and proceed with immediate further development of the Khor Mor field. [9]

Operations

Pearl Petroleum gas fields

Pearl Petroleum is one of the largest private investors in the oil and gas sector of the Kurdistan Region of Iraq, having invested around USD 1.32 billion from inception to 2016. It helps provides electricity to over four million people in the region, or over 70% of its population.[10] Pearl Petroleum currently produces an average of 83,000 barrels of oil equivalent (boe) per day. The daily production includes 330 million cubic feet of gas per day and 13,000 barrels of condensate, with an LPG capacity of over 1,000 tonnes per day. Pearl Petroleum’s total cumulative production from 2008 to August 2017 was more than 214 million boe, including 875 bcf of gas, 37.5 million barrels of condensate and 1.15 million tonnes of LPG. In the first stage of the commissioning of the Khor Mor field, Crescent Petroleum and Dana Gas recommissioned existing gas wells, built gas separation and treatment facilities, and constructed 180 kilometres (112 mi) of pipeline across mountainous terrain.[10] Crescent Petroleum and Dana Gas commenced gas deliveries to the Erbil power plant in October 2008.[10]

In the second stage of the project commissioning, completed in 2011, Pearl Petroleum installed a two-train liquid petroleum gas (LPG) plant with current gas production capacity of 330 million standard cubic feet per day (MMSCFD).[10]

As per a report titled Dana Gas and Crescent Petroleum Gas Project in Kurdistan Region of Iraq: Socio Economic Benefits Report authored by global accounting firm PwC, the migration from diesel to cleaner gas enables the Kurdistan Regional Government (KRG) to save an average of USD 300 million per annum in greenhouse gas reduction.[11] Moreover, as gas is more affordable than diesel, the migration is estimated to have helped the KRG save USD 19.7 billion from 2008 to 2016.[11]

Corporate social responsibility

Crescent Petroleum and Dana Gas have implemented a corporate social responsibility (CSR) programme to support the local communities, including providing school supplies, drinking water treatment, mobile medical units, youth sports facilities, and generators and fuel enabling 24-hour electricity for local villages. These initiatives are assisting the local communities in improving their standard of living, health, well-being, security and stability, and the development of human capital in the Kurdistan Region.[12]

See also

References

  1. ↑ "Pearl consortium seeks $1bn from Kurdistan over gas contract". October 22, 2013. Retrieved 3 July 2016.
  2. 1 2 3 "Dana Gas consortium wins pay out case against Kurdistan government in Iraq". Hydrocarbons Technology. Retrieved 3 July 2016.
  3. ↑ Freifeld, Daniel. "The Great Pipeline Opera". Novinite. Retrieved 15 August 2016.
  4. ↑ "Dana Gas Agrees Settlement With RWE Unit on Iraq Dispute". Retrieved 3 July 2016.
  5. ↑ "Disclosure". Dana Gas. Retrieved 26 February 2018.
  6. ↑ "Disclosure". Retrieved 26 February 2018.
  7. ↑ "Disclosure". Disclosure. Dana Gas. Retrieved 26 February 2018.
  8. ↑ "Kurdistan and Pearl Petroleum reach full and final settlement". KRG. Kurdistan Regional Government. Retrieved 26 February 2018.
  9. ↑ Zhdannikov, Dmitry. "Kurdistan pays $1 billion to Dana Gas, partners to settle London case". Reuters. Retrieved 9 March 2018.
  10. 1 2 3 4 "Kurdistan Gas Project". Kurdistan Gas Project. Retrieved 3 July 2016.
  11. 1 2 Dana Gas and Crescent Petroleum Gas Project in Kurdistan Region of Iraq Socio Economic Benefits Report (PDF). PwC. 2015. p. 92. Retrieved 15 August 2016.
  12. ↑ "Dana Gas - Crescent Petroleum gas project brings large economic and social benefits to Kurdistan Region of Iraq". Zaywa. Retrieved 9 March 2018.

Official website

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