After processing, gas will be pumped via 180km of pipelines to IPP power projects under construction close to Irbil and Suleymania. The pipelines will pass close to other gas fields and will have the capacity to carry additional produced gas at a later stage. The use of diesel to fire the power plants and the individual generators, which at present supply all of region's power, is currently costing the KRG significantly, providing the rationale for the fast track development of the project. The initial investment of the Khor Mor development is expected to be around US$ 370 million, rising to US$ 560 million to cover the subsequent phase.

   

The Chemchemal appraisal programme includes acquiring seismic data, re-entry and re-testing of an existing well and drilling 2 appraisal wells. Chemchemal gas field is a large elongated anticline situated in the folded Zagros foreland basin. The structure is approximately 70 kms long by 5 kms wide, and is made up of three domes. The estimated cost and duration of this initial appraisal work programme is approximately US$ 45 million and 12 months respectively. A development programme for full field development will be proposed based on the results of the appraisal programme.

   

The costs for the Khor Mor Field development and the Chemchemal appraisal programme are funded equally by Crescent Petroleum and Dana Gas. Crescent Petroleum, in conjunction with its affiliate, Dana Gas, is the operator.

   

• Crescent Petroleum and its affiliate, Dana Gas sign agreements in April 2007 with Kurdistan Regional Government of Iraq for the development of its substantial gas resources, including the launch of the Kurdistan Gas City.
• Kurdistan Gas City is a major new gas-utilization industrial complex designed to promote private sector investment in a variety of gas-related industries.
• Agreements include the development, processing and transportation of natural gas from the Khor Mor Gas Field, and to appraise the potential of the Chemchemal Gas Field, in order to provide natural gas supplies to fuel domestic electric power generation plants currently under construction near Irbil and Suleymania, by early 2008.
• Khor Mor field development and Chemchemal appraisal programme, with an estimated budget of US$ 370 million and US$ 45 million respectively, will be funded equally by Crescent Petroleum and Dana Gas.