Kurdistan Gas Project IMPACTING COMMUNITIES Contents First published in 2017 by Crescent Petroleum and Dana Gas © Crescent Petroleum and Dana Gas 2017 Erbil, capital of the Kurdistan Region of Iraq Background 2 Community initiatives 6 1. Impacting villages 8 2. Impacting public services 14 3. Impacting people 20 Looking ahead 32 Crescent Petroleum, the first and largest private upstream oil and gas company in the Middle East, and Dana Gas, the first and largest publicly listed natural gas company in the Middle East, have been operating in the Kurdistan Region of Iraq since 2007. 2 Crescent Petroleum / Dana Gas At Crescent Petroleum and Dana Gas, Our CAP has impacted villages, public we impact lives across the region not services and people by fulfilling only through our operations, but also critical needs that could not be met through the social initiatives of our by the public sector or humanitarian Community Action Programme (CAP). associations. 3 Background Kurdistan Region of Iraq overview The terms of the Contract grant Crescent Petroleum and Dana Gas The Kurdistan Region of Iraq (KRI) is exclusive rights to appraise, develop, currently produce over 83,800 barrels an autonomous region in northern Iraq. market and sell petroleum products of oil equivalent per day in the KRI. The mountainous region hosts numerous from the substantial Khor Mor and Chemchemal gas fields, and to provide Crescent Petroleum and Dana Gas’ rivers, fertile lands and picturesque project benefits landscapes. natural gas supplies to fuel two major domestic electric generation plants Crescent Petroleum and Dana Gas’ The KRI is rich in oil, gas and mineral being built in Erbil and Chemchemal, operations have a measurable socio- resources such as copper and iron. Public as well as for local industries and export. economic impact in the KRI. We help data indicate that it has an estimated ensure a nearly continuous power potential of 45 billion barrels of oil and up On 5 February 2009, Crescent supply to over four million citizens, to 200 trillion cubic feet of gas reserves, Petroleum and Dana Gas’ participating fueling the regional economy while or about three per cent of global proven interests were transferred to Pearl enhancing local living standards. gas reserves.* Petroleum Company Limited (“Pearl Petroleum”), a joint venture company Our operations have also enabled the While its economy has traditionally centred owned equally by Crescent Petroleum KRG to save US$19.7 billion on fuel on agriculture and livestock farming, the and Dana Gas. Today, Pearl Petroleum’s costs from inception to 2016, following KRI is currently witnessing increased shareholders also include three major the diesel-to-gas transition. The longer- tourism, growing cross-border trading European utilities companies: (i) term benefits of this investment will and a flourishing oil and gas industry. OMV, Austria’s largest listed industrial reflect its downstream impacts through company, (ii) MOL, a Hungarian oil and the provision of plentiful, reliable and Crescent Petroleum and Dana Gas’ project gas company and Hungary’s largest cheap electricity to the KRI. In April 2007, Dana Gas PJSC entered into listed company, and (iii) RWE, the Crescent Petroleum and Dana Gas’ an agreement (the “Contract”) with the second largest electricity producer project will continue to make a Kurdistan Regional Government (“KRG”) in Germany. for the appraisal and development of two substantial contribution towards major gas fields in the KRI (Khor Mor and To date, Crescent Petroleum, Dana the KRI’s economic and social Chemchemal). Gas and partners have invested development, and help the KRG meet US$1.32 billion into the building of gas its strategic policy and development In October 2007, Dana Gas assigned processing and transmission facilities priorities of enabling infrastructure, 50 per cent of its interest in the Contract in the KRI. economic growth, social well-being and to Crescent Petroleum. Dana Gas and environmental protection—measured Crescent Petroleum began operations Production from the Khor Mor field by the United Nations Millennium on the fields as joint operators and have commenced in October 2008, or 18 Development Goals, now superseded remained as such ever since. months after signing the agreement by the United Nations Sustainable with the KRG. Development Goals—at the national, regional and international levels. *Ministry of Natural Resources, http://mnr.krg.org/ index.php/en/component/content/?view=featured “ At Crescent Petroleum and Dana Gas, we seek to develop the energy assets of our areas of operations. Beyond oil and gas, a major energy asset of the KRI is its youthful population. We are hence committed to unlocking the potential of our surrounding communities notably by employing local talent.” Shakir Shakir Dana Gas’ Country Manager in the KRI 4 Crescent Petroleum / Dana Gas “ Crescent Petroleum and Dana Gas’ impact can be noticed in every household in Chemchemal through the bright lights and warm meals. Crescent Petroleum and Dana Gas always cooperate with the authorities of Chemchemal and Qadir Karam to support education, healthcare, water access, agricultural development and vulnerable communities. We are grateful for their valuable contributions and wish them success in their business and philanthropic activities.” Ramak Ramazan Mayor of Chemchemal 5 Community initiatives In our decade of operation in the KRI, we at Crescent Petroleum and Dana Gas have spearheaded, in cooperation with the KRG and guidance from the Ministry of Natural Resources, multiple Community Action Programme (CAP) initiatives to raise the standards of living across the region. 6 Crescent Petroleum / Dana Gas Impacting By offering: 1 villages Uninterrupted electricity Clean water Impacting By enhancing: 2 public Healthcare services Places of worship By promoting: Impacting Equal opportunities 3 people Education Employment Sports We have impacted villages, public These efforts align with the United services and people by fulfilling Nations Sustainable Development critical needs that could not be Goals (SDGs), a set of 17 global met by either the public sector or goals designed to end poverty, humanitarian associations. protect the planet and ensure Crescent Petroleum and Dana Gas’ prosperity for all by 2030. notable CAP efforts to impact people surrounding their areas of operations are documented below. 7 1 Impacting Despite improvements in the availability of electricity brought by Crescent Petroleum and Dana Gas’ operations in the KRI, certain villages suffer from frequent electricity cuts. Moreover, due to a lack of water processing infrastructure, some rural communities in the KRI lack access to clean water. 8 Crescent Petroleum / Dana Gas Since 2007, we at Crescent Petroleum are the primary beneficiaries of and Dana Gas have sought to our initiatives. empower our neighbouring villages • Each year, we offer US$1.1 million by providing their residents with a worth of complimentary electricity regular supply of electricity and water. to the villagers. Residents of Qadir Karam, a sub- • At their peak, our efforts to provide district in the Chemchemal district water reached over 70,000 people in in Sulaimani Governorate, Chemchemal and its sub-districts. 9 Impacting villages Offering uninterrupted electricity Offering clean water Drilling wells and ponds In rural areas, water from wells and ponds is used not only for drinking Corresponding UN SDG: Corresponding UN SDG: and domestic purposes, but also for Energy Water and Sanitation agriculture and livestock farming. Crescent Petroleum and Dana Gas have drilled five water wells that currently To date, the national power gridline does The United Nations recognises having serve potable water to over 20,000 not reach most villages in Qadir Karam. a consistent access to an adequate villagers in Chemchemal. supply of water that is suitable for Since June 2011, Crescent Petroleum drinking, cooking, bathing and cleaning We have also supported the and Dana Gas have provided as a universal human right. construction and maintenance of complimentary, uninterrupted electricity rainwater harvesting ponds in five to around 1,225 Qadir Karam residents, To obtain water, residents of Qadir Qadir Karam villages. or up to 75 per cent of the population of Karam and neighbouring locations the sub-district. We provide them with mostly rely on water wells and People use the collected rainwater for electricity from our Khor Mor LPG plant rainwater harvesting ponds, which tend household chores and agriculture, while at an average power of 16,000 kilowatt- to be concentrated in major villages. animals use it to quench their thirst. hours per day. Every day, residents of isolated villages In addition and following a request Furthermore, Crescent Petroleum need to travel for long distances to from the directorates of water in and Dana Gas have provided electric obtain water. In summer, as wells dry both Qadir Karam and Chemchemal, generators, along with the fuel required up, most villagers are left without a Crescent Petroleum and Dana Gas to power them, to over 260 people convenient access to clean water. signed contracts with owners of water inhabiting eight remote villages in tankers to deliver potable water to over To provide clean and accessible water Qadir Karam. 1,900 people residing in 21 villages in to the villagers, Crescent Petroleum Qadir Karam. and Dana Gas have constructed water wells and rainwater harvesting ponds, in addition to contracting water tankers in Qadir Karam and Chemchemal. CASE SPOTLIGHT In the summer heat, Dada Sadia, a Qaitul resident in her sixties, mounted her mule for two hours a day to travel the arduous road from her home to the nearest water source. Following Crescent Petroleum and Dana Gas’ intervention, the widow had water delivered regularly to her doorstep thanks to water tankers. The initiative not only saved her from taking painstaking daily trips to the water source, but also allowed her to spend more time attending to her only living son, who has special needs. 10 Crescent Petroleum / Dana Gas “ Before the arrival of Crescent Petroleum and Dana Gas in Qadir Karam, we had no electricity.