Attacks on Major Iraqi Gas Field Drive Out U.S. Contractors

A series of rocket attacks on a gasfield in northern Iraq has sent the U.S. contractors working on its expansion packing, dealing a blow to the Kurdish region’s hopes of boosting its revenues and offering a small alternative to Russian gas.

The project to expand the Khor Mor field operated by Pearl Consortium, majority-owned by Abu Dhabi’s Dana Gas and its affiliate Crescent Petroleum, was suspended at the end of June after three rocket attacks.

Workers from Texan company Exterran Corp returned last month to resume work but two more rockets hit the site on July 25, forcing the company to leave again with no return date planned, industry and Kurdish government sources said.

Khor Mor is one of the biggest gas fields in Iraq, and the expansion plan aims to double production in a region desperately in need of more gas to generate electricity and end almost daily power blackouts.

There was no serious damage from the attacks and existing operations have not been disrupted but the expansion, which involves building a new pipeline at a later stage to Turkey, has been suspended until security in the area is ensured, the sources said.