Abu Dhabi, UAEWednesday 17 July 2019

Dana Gas share from Pearl Petroleum's Kurdish sales doubles in Q1

Pearl Petroleum received $112m from sales in Kurdish region of Iraq

Dana Gas said it got $39m in dividends from Pearl Petroleum's Kurdish sales in Q1. aime Puebla / The National
Dana Gas said it got $39m in dividends from Pearl Petroleum's Kurdish sales in Q1. aime Puebla / The National

Sharjah-based Dana Gas said payments for its operations from a joint venture in Iraq's Kurdistan region doubled in the first quarter.

The energy producer was paid $39 million (Dh143.2m) in dividends from Pearl Petroleum, in which it has a 35 per cent stake, compared to $18m in the first quarter last year, Dana Gas said in a statement on the Abu Dhabi stock exchange on Sunday, where its shares are traded.

Pearl Petroleum, which is majority owned by Dana Gas and its parent Crescent Petroleum, received $112m in sales of condensate, LPG and gas in the Kurdish region of Iraq in the first quarter.

"We have had a very positive start to year in the KRI," said Patrick Allman-Ward, Dana Gas chief executive.

Last week, Dana Gas said its average gas production rose 6 per cent in the first quarter, led by the Kurdish region after increasing capacity at the Khor Mor field in October. The so-called de-bottlenecking project has increased its production by 30 per cent to 400 million standard cubic feet per day.

"We have begun to see the impact of the additional production on our Q1 collection, which has doubled," Mr Allman-Ward said.

Dana Gas and Crescent Petroleum, its partner in the Pearl Consortium, operate the Khor Mor and Chemchemal fields in the Kurdish region of Iraq.

The partners announced the intention to invest $700m as part of a sales agreement and expansion for the gas assets. As part of the 20-year gas sales agreement with the Kurdish government, the two parties will boost gas production by 63 per cent, or 250 million standard cubic feet per day to 650 million scf/d by 2021, and later to 900 million scf/d by 2022. Production of condensate from the assets is expected to reach 35,000 bpd by 2022.

Dana Gas said in March it expects to generate up to $200m in revenues following its latest gas sales agreement with the KRG, as it looks to add more capacity to its assets in the region.

Updated: April 14, 2019 11:10 AM

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