Dana Gas said on 20 August that it has issued a notice of termination to Calgary-based EPC contractor Enerflex, which was implementing the KM250 expansion project at Iraqi Kurdistan’s 500mn cfd Khor Mor gas field. The Emirati firm (35%), which co-operates the field with compatriot Crescent Petroleum (35%) on behalf of the Pearl Consortium (other partners: OMV 10%, Mol 10%, RWE 10%), said the decision follows “numerous performance issues which have arisen during the execution of the contract works.”
Enerflex has been reluctant to re-start work following a deadly drone strike that led to a five-day outage at the field (MEES, 3 May). In its Q2 results presentation, Dana Gas said that work was suspended after Enerflex declared force majeure right after the attack, and it appears that security guarantees given by the Federal and Kurdistan governments to the partners were not sufficient for the Canadian firm to resume construction. (CONTINUED - 280 WORDS)