Dana Gas collections increase 16.7% to $230mn in first nine months of 2019
Its collections came from Egypt, the UAE, and its share of Pearl Petroleum Company in the Kurdistan Region of Iraq
Dana Gas announced that in the first nine months of 2019 collections in Egypt, the UAE and from its share of Pearl Petroleum Company Limited’s sales in the Kurdistan Region of Iraq (KRI), increased 16.7% year on year to $230mn (AED 844m).
Dana Gas, which owns a 35% stake in Pearl Petroleum, saw its share of sales of condensate, LPG and gas in the KRI jump 52% to $118mn in the nine-month period from $77mn in the same period the previous year. Dana Gas received cash dividends of $68.3mn from Pearl Petroleum over this period.
Meanwhile, the collections from Dana Gas Egypt were $105mn during the period, in line with the $111mn received in the same period of 2018 whilst collections from the Company’s Zora gas field in the UAE stood at $7.3mn.
"We are pleased to record higher collections over the first nine-months of the year in the Kurdistan Region of Iraq, due primarily to an increase in production and regular payments from the government," said Dr Patrick Allman-Ward, CEO of Dana Gas. "Our overall collections are higher at $230mn, and our strong in-country relationships have continued to benefit our overall business performance. We are committed to operating all our assets to maximise production and value for all our stakeholders.”
Pearl Petroleum is boosting production in the KRI, where 25% of the region’s power needs remain unmet and the demand for power is expected to outstrip supply in the medium and long-term. The consortium operates world-class gas fields in the KRI and currently enables the power generation of three quarters of the area’s official electricity production. It signed a 20-year gas sale agreement with the KRG earlier this year that will facilitate the production and sale of an additional 250 MMscf/d of gas. Pearl Petroleum’s expansion plan will see output increase to 650 MMscf/d in 2022, and then to 900 MMscf/d by 2023 from the current 400 MMscf/d.
Dana Gas’s share of the proved plus probable (2P) hydrocarbon reserves at Pearl Petroleum Khor Mor and Chemchemal Fields in the KRI increased by 10% following the recent certification of reserves by its independent external reserves auditor, Gaffney Cline Associates. Dana Gas’s total share is equivalent to 1,087 million barrels of oil equivalent, up from 990mn barrels of oil equivalent when Gaffney Cline first certified the fields in April 2016.
By 2040, natural gas demand in the Middle East and North Africa region is expected to grow 40% and oil demand will increase by 10mn barrels a day, according to industry estimates. To help meet that increase in energy demand, projects valued at $238bn will be executed in the next 20 years.