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UAE-based energy firm Dana Gas said its collections from sale of condensates in the first half of 2021 from the Kurdistan Region of Iraq (KRI), and Egypt, have more than doubled year-on-year to 678 million dirhams ($185 million), the highest level in more than five years.
Dana Gas, which owns a 35 percent stake in Pearl Petroleum, saw its share of collections from sales of condensate, LPG and gas in the KRI jump 85 percent to $87 million in the first half 2021 compared to $47 million in the same period the previous year.
Dana Gas and another UAE firm Crescent Petroleum operate the Khor Mor field on behalf of the Pearl Petroleum consortium.
The Sharjah-based Dana received cash dividends of $48.3 million from Pearl Petroleum over this period. For the same period, the Dana Gas share of Pearl revenue was $87 million, while net income was $57 million.
Dana Gas share of Pearl Petroleum production for the first half 2021 averaged 150 Million standard cubic feet per day (MMscf/d) of gas, 5,250 bbls/d condensate and 350 metric tonnes per day (MT/d) of LPG.
In Egypt, Dana Gas collected $98 million during H1 2021, compared to $43 million received in the same period of 2020, representing a 128 percent increase.
In Q1-2021, Dana Gas, which is listed on the Abu Dhabi Stock Exchange, made a net profit of $24 million, 41 percent higher than in the year-ago period.
Patrick Allman-Ward, CEO of Dana Gas, said this was one of the best collection periods in the past several years, driven and supported by the strong rebound in oil prices.
“The respective governments of both the KRI and Egypt are meeting their payment obligations, ensuring the petroleum industry investors are receiving their current monies on time and catching up on overdue payments. This provides us with the confidence to reinvest in our operations, notably in the KRI where our expansion plans are well underway. We are in the process of constructing our new KM250 gas train which is on track for first gas in Q2 2023.”
In April, Dana Gas, along with its consortium partner Crescent Petroleum, resumed the expansion project at the Khor Mor gas field in KRI following an additional investment of $600 million. The project was halted after the contractor declared force majeure due to the COVID-19 crisis.
Allman-Ward said in Egypt, work was continuing to maintain production and to prepare for drilling exploration well in offshore Block 6 Concession Area which “holds material potential of over 20 Tcf of gas resources.”
(Writing by Brinda Darasha; editing by Seban Scaria)
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© ZAWYA 2021
