- Debottlenecking expansion plans on track; production output set to rise by 25% by Q3 2018
- Drilling programme on Khor Mor and Chemchemal commences
Sharjah, UAE: Dana Gas PJSC (“Company”), the Middle East’s largest regional natural gas company is pleased to provide an update on its operations in the Kurdistan Region of Iraq (KRI).
Dana Gas has received $43.75 million (AED 161 million) in the first half of 2018 as dividends from Pearl Petroleum Company Limited (“Pearl Petroleum”) for condensate and LPG sales in the KRI, including a $7 million (AED 25.7 million) payment for the month of June 2018. Pearl Petroleum is a consortium, comprised of five oil and gas companies, focused on exploration and production of natural gas and liquids assets in the KRI, in which Dana Gas is a 35% shareholder and the joint operator. This is separate from cash-flow kept within Pearl to sustain current operations, and from the Company’s $140 million allocated for further investment and development of the fields, in accordance with the settlement agreement signed in August 2017 with the KRG. Since the settlement agreement signed by Pearl Petroleum with the KRG, all payments have been received in a timely manner in KRI without any current outstanding receivables.
Dana Gas’ net share of production in the KRI averaged 26,100 boepd of production during the first half of 2018, a slight increase on H1 2017’s output of 25,900 boepd. In addition, plans are underway to increase Pearl Petroleum’s production by 170% by 2021 through the installation of two 250 MMscf/d gas processing trains, adding to the two trains already in commission. This will increase the capacity to process gas and condensate from the Khor Mor field by 580 MMscf/d and 20 mbbld respectively.
The first phase of this expansion programme is the fast-track debottlenecking project of the current production facilities. The project remains on track to deliver an increase in output of 80 MMscf/d, the equivalent of approximately a 25% uplift, by Q3 2018. In addition, third-party financing of $25.9 million for the project has been secured and a 10-year Gas Sales Agreement with the KRG to supply and sell additional quantities of gas from the project has been signed.
As part of the first phase, a drilling programme for the appraisal and development of Khor Mor and Chemchemal will take place over the coming months, as well as workover operations of existing wells.
The expansion plan will be financed at the Pearl Petroleum level from third party financing or internal cash flow generated without any finance provided by Dana Gas.
-Ends-
About Dana Gas
Dana Gas is the Middle East's first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of 67,600 boepd in 2017. With sizeable assets in Egypt, KRI and the UAE, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit: www.danagas.com
About Pearl Petroleum
Pearl Petroleum is a five-company consortium consisting of two Middle Eastern oil and gas companies, Dana Gas and Crescent Petroleum, in partnership with three major European energy companies: OMV, MOL, and RWE. Pearl Petroleum produces and develops natural gas and liquids assets in the Kurdistan Region of Iraq.
Communication & Investor Relations Contact
Mohammed Mubaideen
Head of Investor Relations
+971 6 519 4401
Investor.relations@danagas.com
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