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Dana Gas reports higher Q2 profit as revenues, KRG profit up

Dana Gas reveals financial impact of expansion in Iraqi Kurdistan

Mar 12, 2019
2 min read
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Dana Gas disclosed to the Abu Dhabi Securities Exchange how much it expects to generate following its latest gas sales agreement with the Kurdistan Regional Government last week.

In a statement from Dana Gas chief executive Patrick Allman-Ward said: "The financial impact of this expansion is directly related to the oil price. With oil price ranging between $60-$70 per barrel we expect the new phase of expansion to add $175-$200 million (AED 641-733 million) to Dana Gas share of revenues and project's cash flows per annum."

Last week a UAE consortium led by Crescent Petroleum and Dana Gas, signed a new 20-year gas sales deal with the Iraq’s Kurdistan Regional Government to boost production, which will see the Khor Mor plant gas project attract another $700 million of investment.

The GSA covers the second phase of expansion in the Kurdistan Region of Iraq (KRI), that aims to increase Pearl Petroleum's (Dana Gas 35 per cent) gas and condensate production by 63 per cent from 400 mmscf/d and 15,000 bbl/d to 650 mmscf/d and 25,000bbl/d respectively.

Dana Gas said that the financial impact of this transaction will come into effect when the construction of the new capacity is completed in 2021 and the incremental production starts to flow.

Allman-Ward added: "We are planning to further expand production by an additional 250 mmscf/d in 2022 which is expected to have a similar financial impact and will take production of gas and condensate up to 900 mmscf/d and 35,000bbl/d respectively."

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