Overview
- Dana Gas announced on Thursday that it had suspended operations at the Khor Mor gas field because of credible security threats and said the decision was coordinated with KRG, Sulaymaniyah authorities and the Iraqi federal government.
- Khor Mor supplies the bulk of the Kurdistan Region's gas for power and the shutdown could trim regional generation by up to about 3,000 megawatts, forcing big cuts to hours of electricity available to homes and industry.
- The company said the processing plant remains in a state of operational readiness and can be brought back online rapidly once security conditions improve.
- Market participants reacted by pricing higher near-term risk into crude, with models showing roughly a 22% chance that WTI could reach $90 by the end of July following the disruption.
- The field is operated by the Pearl Petroleum consortium led by Dana Gas and Crescent Petroleum, holds roughly 8.2 trillion cubic feet of gas after a KM250 expansion to about 750 MMSCFD, and has a history of rocket and drone attacks that have previously forced production halts.