Dana Gas reports improved output in first six months of 2024

ERBIL, Kurdistan Region  - Dana Gas highlighted “increased production” for its natural gas operations and “consistent payments” in the Kurdistan Region in the first half of this year despite a drone attack on Khor Mor in April.

Dana Gas, the largest non-government owned natural gas company in the Middle East, said in its quarterly statement on Thursday that its production in Kurdistan Region “increased by 3% to 37,600” barrels of oil equivalent per day in the first half of 2024.

“Increased production output in the KRI, driven by higher demand from local power plants, has bolstered our operational performance,” Dana Gas CEO Richard Hall said in the statement. “Coupled with robust hydrocarbon prices, we achieved a strong financial performance despite lower condensate prices and reduced output from Egypt.”

Dana Gas reported its total profits increased to $34 million in the second quarter of this year, compared to $33 million in the same period last year, “helping to offset the 7% drop in revenue during the same period,” according to the company’s report.

On April 26, the drone strike on the Khor Mor gas field in Sulaimani’s Chamchamal district, operated by Dana Gas, killed four Yemeni nationals and injured several others who were repairing a condensate storage tank damaged by a previous attack.

“We are dedicating all our efforts on behalf of the KRG [Kurdistan Regional Government] and the people of Kurdistan to enable the earliest resumption by Pearl of KM250,” Hall added in the midyear statement.

Following the attack, Dana Gas briefly suspended operations before restarting operations in early May.

The company headquartered in the United Arab Emirates said in its second-quarter report that “concerted efforts between Dana Gas and its partners are ongoing towards setting a swift completion date for the project. The Company will update the market in due course on the revised completion date and impact on costs.”

In Dana Gas’ previous quarterly statement, the company noted an “improved cash position resulting from consistent payments” in the Kurdistan Region.

“Thanks to a newly established payment mechanism with the local government, we have seen significant improvements in our receivables in the KRI, receiving regular payments since November 2023 and effectively reducing past receivables,” the Dana Gas chief executive also said in the statement on Thursday.

The Khor Mor gas field produces over 500 million standard cubic feet of gas per day, according to Dana Gas. The field serves as the primary gas supplier for the Kurdistan Region's power plants. 

The field is occasionally attacked by pro-Iran militia groups, damaging electricity production in the Kurdistan Region. The drone strike on the field in late April shut down some two-thirds of the Kurdistan Region's electricity generation. The drone attack in January similarly brought work at the field to a halt.