ERBIL, Kurdistan Region – The UAE-based Dana Gas reported on Wednesday a profit of $50 million from the beginning of the year until April with production in the Kurdistan Region rising despite a challenging economic situation.
According to a report published by the company, Dana Gas generated a net profit of $50 million from January to April, a $4 million decrease from the same period in 2022 amid a 22% drop in its realized selling hydrocarbon prices.
“Dana Gas has delivered a strong set of financial and operating results despite the downturn in energy prices. We remain financially disciplined and focused on maintaining production and lowering costs, despite the challenging economic situation in the KRI [Kurdistan Region of Iraq] and Egypt,” company CEO Patrick Allman-Ward said.
Operating costs for the company in the Kurdistan Region were reduced by 14% during the first quarter of 2023.
In the report, Dana Gas attributed the decrease in revenue to “a pullback in energy prices from high levels.”
The company also said that it is expecting the first gas to be delivered from the KM250 expansion set in Khor Mor gas field, located in Sulaimani’s Chamchamal district, by April 2024.
The natural gas produced in the Kurdistan Region is primarily used for generating electricity at three plants across the Region, but security threats have prevented the company from implementing the development project for production at a faster pace.
Khor Mor field has repeatedly come under rocket attacks, reportedly by Iran-affiliated Iraqi militia groups with a spate of attacks occurring last year.
Despite the security threats on the gas field, Dana Gas last year said they would be able to meet the Kurdistan Region’s full gas demands in about two years.
The KM250 expansion project is supported by a $250 million financing agreement for 7 years announced in September 2021 with the US International Development Finance Corporation.
According to a report published by the company, Dana Gas generated a net profit of $50 million from January to April, a $4 million decrease from the same period in 2022 amid a 22% drop in its realized selling hydrocarbon prices.
“Dana Gas has delivered a strong set of financial and operating results despite the downturn in energy prices. We remain financially disciplined and focused on maintaining production and lowering costs, despite the challenging economic situation in the KRI [Kurdistan Region of Iraq] and Egypt,” company CEO Patrick Allman-Ward said.
Operating costs for the company in the Kurdistan Region were reduced by 14% during the first quarter of 2023.
In the report, Dana Gas attributed the decrease in revenue to “a pullback in energy prices from high levels.”
The company also said that it is expecting the first gas to be delivered from the KM250 expansion set in Khor Mor gas field, located in Sulaimani’s Chamchamal district, by April 2024.
The natural gas produced in the Kurdistan Region is primarily used for generating electricity at three plants across the Region, but security threats have prevented the company from implementing the development project for production at a faster pace.
Khor Mor field has repeatedly come under rocket attacks, reportedly by Iran-affiliated Iraqi militia groups with a spate of attacks occurring last year.
Despite the security threats on the gas field, Dana Gas last year said they would be able to meet the Kurdistan Region’s full gas demands in about two years.
The KM250 expansion project is supported by a $250 million financing agreement for 7 years announced in September 2021 with the US International Development Finance Corporation.
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