COMMITTED PARTNER TO IRAQ AND EGYPT
“Our governance system and structures have allowed Crescent Petroleum to be the only international oil company to have maintained a continuous presence in Iraq for the past 25 years.”
A key area of focus for Crescent Petroleum and its affiliates has been the development of oil and natural gas assets in the region. Having pioneered the development of UAE’s oil and gas market, with an investment in today’s value of US$2.6 billion since inception, Crescent Petroleum expanded its horizon with focus on Iraq and Egypt.In the Kurdistan Region of Iraq (KRI), gas was desperately needed for power generation in 2007. In order to meet this challenge, Crescent Petroleum and Dana Gas were tasked with the development of KorMor field on a fast– track basis. Rising to the challenge posed by difficult terrain, the presence of unexploded remnants of war, and the myriad additional concerns that had discouraged other energy companies from venturing into the area — we completed our project in record time.
Today, our gas deliveries provide nearly uninterrupted electricity supply for over four million Iraqis in the KRI. We have also enabled ongoing fuel savings of billions of dollars for the Government of KRI.
While our work in the KRI exemplifies Crescent Petroleum’s ethos of looking for solutions, rather than excuses, when faced with many challenges, our history in Iraq goes far beyond this remarkable project. With offices across the country, Crescent Petroleum has strong roots in Iraq and has continued to be involved in various oil & gas initiatives in the country.
BEATING THE ODDS: FAST-TRACK COMPLETION OF PHASE-I OF THE KRI GAS PROJECT
Under the terms of the agreement Crescent Petroleum and Dana Gas (together “CREDAN”) were given exclusive rights to appraise, develop, process, market and sell petroleum from the substantial Kormor and Chemchemal Gas Fields, and as a first phase to provide natural gas supplies to fuel two major domestic electric power generation plants being built in Erbil and Chemchemal, as well as for local industries and export. The agreement was subsequently assigned to Pearl Petroleum Company Limited, the shareholding of which is currently Dana Gas - 35%, Crescent Petroleum - 35%, OMV - 10%, MOL - 10% and RWEST - 10%.CREDAN initiated the fast-track appraisal and development of two promising candidate fields, along with the installation of all the related facilities and infrastructure. We had six months to import over 65,000 tonnes of equipment into a landlocked region that faced trouble along three of its borders at the time. This meant trucking goods from Turkey through a number of points of potential insurgency.
We also had to build a 180-kilometre corridor and lay pipelines through rocky, mountainous terrain, while clearing minefields and obtaining permission from local farmers — many of them armed — to go through their land. There was also a severe shortage of skilled local talent for tasks such as welding, let alone for the project’s major engineering, production and construction needs.
We completed the work in record time, with gas production commencing in October 2008, 15 months after the contract was signed. Results of a benchmarking study by industry analyst IHS found that CREDAN’s work had outperformed similar projects by approximately 32 per cent in terms of time and schedule, and 28 per cent in terms of costs. Crescent owes successes like these to the unrelenting perseverance and innovative spirit of our project team, bolstered by our in-house access to the full capabilities of the entire Crescent Group.