The Sharjah-led consortium that operates the only commercial gasfields in Iraqi Kurdistan plans to expand its production as domestic needs grow and the semi-autonomous region considers exports to Europe.
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Crescent Petroleum, a family-controlled company, and Dana Gas, its publicly traded sister company, are leading production at the Kormor and Chemchemal gasfields and have invested US$920 million (Dh3.37 billion) into gas production and processing facilities that now provide enough fuel for 22 hours a day of electricity, a wealth of power compared with the four hours or so a day available in the rest of Iraq.
The companies are planning a second phase to increase gas production and push Kurdistan towards becoming an exporter to international markets.
"We're in discussions with the Kurdistan Regional Government about the next phase of expansion and continual investment," said Majid Jafar, the chief executive of Crescent Petroleum and a Dana Gas board member. "We can move quickly, and the Kurdistan region is developing fast."
Although an international scramble for oil riches in Kurdistan has grabbed the spotlight, the regional government estimates as much as 200 trillion cubic feet of natural gas reserves could lie under the surface of this undeveloped region in the north of Iraq. Kurdistan is reserving tranches there for its domestic power needs and yet-to-be-built power plants in Kirkuk, Mosul and Salahuddin in central Iraq - but after that, it wants to begin exporting to Europe, or beyond.
"We need to monetise the value of this gas," Ashti Hawrami, Kurdistan's oil minister, told energy executives in Erbil last week.
Plans include exporting the gas via the Nabucco pipeline linking Turkey with Austria, or a pipeline connecting Kurdistan to the Turkish port of Ceyhan, where it would be converted to a liquid that could be exported by tanker.
The consortium, which includes Hungary's MOL and Austria's OMV as minority investors with 10 per cent each, processes about 300 million cu ft of gas a day. Mr Jafar is optimistic about increasing that and said oil explorers in the region had approached his company about how to manage the gas they find in the course of crude production, although none are yet at commercial volumes. He declined to put a number to the consortium's ultimate targets.
Companies from the region have a unique role to play in the Iraqi energy sector, according to Mr Jafar.
"Because of the risk profile in Iraq, now we really feel that investors from the region - and there's a lot of capital in the region - are not only welcomed, but are better able to manage the risks than western companies, who see a lot more risk potentially," he said.
"We're seeing that already in the Kurdistan region and in other parts of Iraq the investment ties within the region, particularly the GCC, are happening much quicker than [with] big western conglomerates."
ayee@thenational.ae
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THE SPECS
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Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Essentials
The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes.
Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes.
In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes.
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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