By John Lee.
Dana Gas has repaired its liquefied petroleum gas (LPG) facility at Kor Mor in Iraqi Kurdistan, which was damaged when a tanker smashed into it last year, halting its production of up to 900 tonnes of oil equivalent a day.
Dana and its parent company, Crescent Petroleum, remain in negotiations with the Kurdistan Regional Government (KRG) about receivables that the companies are owed because of payment delays in the autonomous region.
The repairs at the Kor Mor LPG plant cost $15m, the company said in a statement.
Dana and Crescent have together invested more than $1bn into their gas production in the region. Austria’s OMV and Hungarian MOL are minority partners in the Kurdish operations, which include the gasfields of Kor Mor and Chemchemal as well as the LPG plant.
“We are working with the KRG and the ministry to resolve the outstanding issues including the receivables, as soon as possible,” said Rashid Al Jarwan, Dana’s executive director and acting chief executive.
Dana received US$48 million for its gas last year, after the finance ministry in Baghdad agreed to release $1 billion as payment for KRG exports. The Kurdish and the central government are in negotiations over another payment, which is believed to be smaller.
(Sources: The National, Dana Gas)