A series of rocket attacks on a major gasfield in northern Iraq has driven out American contractors working on its expansion packing, according to a Reuters report. The exit of US contractors is a blow to the Kurdish region’s hopes of boosting its revenues and offering an alternative to Russian gas.
The project to expand the Khor Mor field in the Kurdistan Region of Iraq, operated by Pearl Consortium, majority-owned by UAE-based operator Dana Gas and its affiliate Crescent Petroleum, was suspended at the end of June after three rocket attacks.
Workers from Texas-headquartered Exterran Corp returned last month to resume work but two more rockets hit the site on July 25, forcing the company to leave again with no return date planned, industry and Kurdish government sources said.
Khor Mor is one of the biggest gasfields in Iraq and the expansion plan aims to double production in a region desperately in need of more gas to generate electricity and end almost daily power blackouts.
There was no serious damage from the attacks and existing operations have not been disrupted. However, the expansion, which includes building a new pipeline at a later stage to Turkey, has been suspended until security in the area is ensured, the sources said.
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 Erbil to the city of Dohuk, close to the Turkish border, running parallel to an existing pipeline.
According to Reuters, delays could cost the debt-ridden Kurdistan Regional Government a sizeable penalty and will leave Kurdish gas export plans on hold.
