Dana Gas terminates EPC contract for Khor Mor expansion project

Abu Dhabi-listed Dana Gas has issued a notice of termination to Enerflex, the EPC contractor for the Khor Mor expansion project in Iraqi Kurdistan (KM250 project), the company announced on August 20 in a stock exchange filing.

Dana Gas formally issued the notice on August 19, citing numerous performance issues that have arisen during the execution of the contract works.

“The ongoing impact of these performance issues has materially affected Enerflex’s ability to meet its contractual obligations, leading to unacceptable delays and hindering the progress and timely completion of the Khor Mor gas expansion project,” Dana Gas stated.

The Khor Mor gas project is operated by Pearl Petroleum, a joint venture between Dana Gas and Crescent Petroleum. Dana Gas revealed that Pearl Petroleum has been compelled to intervene directly to ensure the project’s timely and successful completion. This intervention will allow Pearl Petroleum to assume direct control over the remaining phases of the project, ensuring it is brought back on track and completed in the most timely manner possible.

The KM250 expansion project will increase the total capacity of the Khor Mor gas project by 55%, bringing it to 700mn ft³/day.