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By John Lee.

Genel Energy has announced that Sir Dominick Chilcott (pictured) has indicated his intention to retire from the Board at the AGM in May 2026.

Sir Dominick has served for just under two years at Genel as Non-Executive Director, a member of the Remuneration Committee and the Nomination Committee.

Patrick Allman-Ward, Chair of Genel Energy, said:

"In my short time at Genel it has been a pleasure to work with Sir Dominick and benefit from his geopolitical knowledge and experience.  On behalf of the Board, we wish him all the best with his other commitments."

(Source: Genel Energy)

By John Lee.

Genel Energy has announced the appointment of Patrick Allman-Ward as an Independent Non-Executive Director and Chair of the Board, with effect from 9 February 2026.

According to a statement from the company:

"Patrick is a globally respected energy leader with over 40 years of international upstream experience.  He served as CEO of Dana Gas from 2013 to 2024, where he led transformative change, strengthening governance and capital discipline while delivering sustained operational and shareholder value. Prior to this, he built a distinguished 30-year executive career with Shell across several regions.

"Currently, Patrick also serves as Chair of Terra Mining and Vice Chair of United Terra Enterprises, both of which are private companies.

"On his appointment, Patrick will be appointed as Chair of the Reserves Committee and Nomination Committee and a member of the Remuneration Committee. Canan Ediboğlu will revert to the position of Senior Independent Director."

Canan Ediboğlu, Interim Chair of Genel, said:

"We are delighted to welcome Patrick to the Company. He brings deep strategic insight, technical experience, sound judgement and a strong commitment to governance, integrity, ESG matters and long-term value creation.  We look forward to benefiting from his wealth of industry experience, insights and skills as the Company seeks to fulfil its strategic objectives and create shareholder value."

Patrick Allman-Ward, Chair Designate of Genel, said:

"I am honoured to join the Board and support the Company as it seeks to deliver on its strategic goals and pursue opportunities that lie ahead whilst upholding the Company's commitment to be a socially responsible contributor to the global energy mix."

(Source: Genel Energy)

By John Lee.

UAE-based Dana Gas said on Wednesday that its Pearl Petroleum subsidiary recently received $101 million payments from the Kurdistan Regional Government (KRG).

However, the shares were trading down approximately 1 percent, as overall revenues and profits saw a decline.

Full statement from Dana Gas:

Highlights - H1 2023

• KRI production increased by 6% to 36,400 boepd
• Revenues at AED 814 million ($222 million), amid a softening of hydrocarbon prices
• KM250 expansion project scheduled to be completed by Q2 2024
• Pearl Petroleum recently received $101 million payments from the KRG

Sharjah, UAE; 9 August 2023: Dana Gas PJSC (the "Company"), the Middle East's largest regional private sector natural gas company, today announced its financial results for the half year ended 30 June 2023.

In the first six months of the year, the Company generated a net profit of AED 304 million ($83mm) as compared to AED 407 million ($111mm) in H1 2022. Profitability for the first half declined amid a 25% drop in the average price of Brent during H1 2023 to $80 per barrel compared to $107 per barrel in H1 2022. The decline in profitability was also due to additional discounts on condensate sales in the KRI, where the Company began to sell to third party local buyers as other companies shut down production in the Kurdistan region of Iraq (KRI).

Revenue for the first six months of the year decreased 22% to AED 814 million ($222mm) compared to AED 1,041 million ($284mm) in H1 2022 due to lower realized prices amid the softening global oil and gas prices.  The Company's realized prices during the period averaged $56/bbl for condensate and $37/boe for LPG compared to $87/bbl and $44/boe respectively in H1 2022.

The impact of lower realized prices on the Company's profitability was partially offset by a production increase in the KRI and reduced operating costs by 15%.

Pearl Petroleum recently received $101 million from the Kurdistan Regional Government (KRG) despite the ongoing challenges within Iraq and is in ongoing discussions with the KRG to settle outstanding receivables as soon as possible. Unlike other operators in the KRI Pearl's operations and production have continued without interruption since all its products are consumed locally.

Dr Patrick Allman-Ward, CEO of Dana Gas, commented:

"Dana Gas's first half results reflect the challenging environment hydrocarbon producers have been facing amid a decline in global oil prices. To counter the downturn in energy prices, the Company has strengthened its focus on maintaining production and lowering costs, while working with partner governments in Egypt and the KRI to settle outstanding payments.  

"As oil prices have turned a corner and started to rise, we are optimistic about the potential positive impact on our Company's financial results for the remainder of the year, provided that this upward trend persists."

Operations & Production

The Group's overall production in H1 2023 averaged 59,800 boepd, a 2% decrease as compared to 61,100 boepd in H1 2022 as a decline in Egypt production outweighed an increase in the KRI. The 12% production drop in Egypt was mainly the result of natural field declines. Owing to active reservoir management and optimization of production from existing wells, the reduction was significantly below expected levels of decline for Nile Delta fields, which are typically between 20-30% each year. KRI production grew by 6% to 36,400 boepd from 34,500 in H1 2022, KRI production was supported by the successful debottlenecking project that added 50 MMscf/d to output in January. In the second quarter, a partial shut down for maintenance in Kor Mor was successfully carried out without any HSSE incidents but impacted production during its duration.

Pearl Petroleum has now successfully completed the drilling of the six KM250 project development wells. Once complete, the KM250 expansion project will add 250 MMscf/d of production, resulting in 750 MMscf total daily production capacity.

Liquidity

The Company's cash position at the end of H1 2023 stood at AED 370 million ($101mm), including AED 301 million ($82mm) held at the Pearl Petroleum joint venture.

The Group collected a total of AED 388 million ($106mm) during H1 2023, with the KRI and Egypt contributing AED 293 million ($80mm) and AED 95 million ($26 mm) respectively. In Q2 2023, Pearl management proactively began the sale of condensate to third party local buyers which has allowed Pearl to improve its liquidity position through regular collections on condensate sales.

The Company's receivables in KRI stands at AED 356 million ($97 million) and in Egypt at AED 150 million ($41 million) at the end of the first half.

In May, Dana Gas also received regulatory approval to increase foreign ownership in the Company's shares, in line with the UAE's new Commercial Companies Law that has abolished a requirement that UAE nationals own 51% of onshore companies. Foreigners can now hold up to 100% of Dana Gas's shares, up from 49%, a decision that was approved by the Company's shareholders at its Annual General Meeting on April 26.

(Source: Dana Gas)

Dana Gas has announced its financial results for the first quarter ended 31 March 2023.

For the first quarter of 2023, the Company generated a net profit of AED 183 million ($50 million) as compared to AED 198 million ($54 million) in Q1 2022. Profitability for the quarter dropped just 7% compared to a 22% decrease in the Company's realized prices during the period. The impact of lower realized prices on the Company's profitability was partially offset by a production increase in the KRI and reduced operating costs by 14%.

Revenue was 13% lower at AED 447 million ($122 million) in Q1 2023 compared to AED 513 million ($140 million) in 2022. The decrease in revenue, and subsequently net profit, was primarily due to a pullback in energy prices from high levels.

The Company's realized prices during the period averaged $59/bbl for condensate and $39/boe for LPG compared to $82/bbl and $43/boe respectively in Q1 2022.

Dana Gas's shareholders in April approved the Board's recommendation for a final dividend payment of 4.5 fils per share for H2 2022. The payout of 4.5 fils per share for the second half of 2022, to be distributed on the 25^th of May, will take the total dividend payment for 2022 to AED 630 million or 9 fils per share, a 12.5% increase compared to the dividend for 2021.

Dr Patrick Allman-Ward, CEO of Dana Gas, commented:

"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 and Egypt. Our target date for completion of the KM250 gas expansion project is April 2024, and we are hopeful our Egypt consolidation agreement will be finalized soon Looking ahead we are focusing our efforts on managing capital expenditure and preserving liquidity, as we continue to focus on recovering our outstanding receivable payments with both the KRG and Egyptian Government".

 Operations & Production

Group production in Q1 2023 averaged 62,900 boepd, a 1% increase as compared to 62,400 boepd in Q1 2022. KRI production grew by 9% to 38,700 boepd from 35,400 in Q1 2022, building on the production capacity increase in Q4 2022 after the Khor Mor plant de-bottlenecking enhancements were completed. Production in Egypt declined 10% to 24,200 boepd in Q1 2023 from 27,000 in Q1 due to natural field declines.

The Company has now completed the drilling of five KM250 project wells, and the testing of two wells has shown they are able to produce gas at similar daily rates as the current producing wells. The three other wells will be tested in the near term, as the Company pushes forward on delivering first gas from the project by Q2 2024.

 Liquidity

The Company's cash position as of March 31 stood at AED 542 million ($148 million), including AED 374 million ($102 million) held at the Pearl Petroleum joint venture.

To bolster its liquidity, the Company entered into a short-term loan facility of $65 million with a local UAE bank during the first quarter. The facility was fully drawn in April 2023.

The Group collected a total of AED 231 million ($63 million) during the first quarter, with Egypt and the KRI contributing AED 55 million ($15 million) and AED 176 million ($48 million) respectively.

The Company's receivables in KRI stands at AED 293 million ($80 million) and in Egypt at AED 128 million ($35 million) at the end of the quarter.

(Source: Dana Gas)

Dana Gas PJSC has announced its preliminary financial results for the full year ended 31 December 2022:

The Company reported net profit of AED 667 million ($182mm) in 2022 as compared to AED 1.16 billion ($317mm) in 2021. Excluding other income and impairments, Dana Gas reported adjusted net profit of AED 718 million ($196mm) as compared to AED 469 million ($128mm) in 2021, an increase of 53%. The strong year-on-year profits were sustained by high energy prices and prudent cost control.

Revenue rose 17% to AED 1.94 billion ($529mm) in 2022 compared to AED 1.66 billion ($452mm) in 2021 due to higher realized prices and production output in the Kurdistan Region of Iraq (KRI). Production in the KRI and Egypt remained uninterrupted throughout the year. Operational costs decreased by 5% to AED 209 million ($57mm) in 2022 compared to AED 220 million ($60mm) in 2021.

In 2022 production in the KRI increased by 1% to 34,300 boepd. Following the successful completion of further plant de-bottlenecking enhancements at the Khor Mor facility in the KRI in the second half of the year, the plant's production capacity increased by 50 MMscf/d to 500 MMscf/d.   Gas production reached this new record of 500 MMscf/d on the 14 January which will have a positive impact on production and revenues in 2023.

The Company reached an agreement with the Egyptian Natural Gas Holding Company (EGAS) for consolidation of its existing concessions on enhanced fiscal terms. The new terms will extend the life of Dana Gas' economic assets and help the Company maximize value for all stakeholders over the coming years. The agreement is subject to the Egyptian parliament rectification which is expected later this year.

Dr Patrick Allman-Ward, CEO of Dana Gas, commented:

"Our strong results for the year are a testament to our ability to control costs and maintain production levels amid a prolonged environment of high energy prices. In 2022, we managed to optimize our assets in the KRI, reaching record levels of production and increasing capacity by a further 50 MMscf/d following the completion of a by-pass project. The successful completion of the project in the KRI and our plans for maximizing production in Egypt will have positive impact on the environment as gas production displaces more carbon intensive fuels for power generation which will enhance the quality of life of residents in the KRI, Iraq and Egypt.

"Our operational performance, in which all our assets continued to produce uninterrupted throughout the year, even under testing economic circumstances and security challenges, exemplifies our ability to keep delivering on our commitments.

"The outlook for this year remains encouraging, especially if oil prices remain at current levels. However, there remains various challenges, specifically with collections in the KRI and foreign currency withdrawals in Egypt. We remain vigilant as we look at our top priorities for the year, which are, in addition to securing timely payments, to develop the vast potential presented by our world-class assets in the KRI and maximize the value of our Egypt assets once the new concession consolidation agreement is ratified by the Egyptian parliament.

 Operations & Production

Average group production declined slightly in 2022 to 60,200 boepd, a 3% reduction from 62,100 boepd in 2021. This resulted from an 8% reduction in Egypt to 25,900 boepd, due to natural field declines, offset by 1% increase in production output in the KRI to 34,300 boepd versus 33,800 in 2021. Both KRI and Egypt operations continued uninterrupted throughout 2022.

Liquidity

The Company's cash balance at year-end stood at AED 553 ($151mm), including AED 322 million ($88mm) held at the Pearl level.

The Group collected a total of AED 1.16 billion ($318mm) in 2022, with Egypt and the KRI contributing AED 311 mm ($85mm) and AED 854 million ($233mm) respectively.

As at 31 December 2022, the Company's Egypt and KRI receivables increased to AED 110 million ($30mm) and AED 235 million ($64mm) respectively. The increase in the KRI is a result of delays in the payment of invoices. In Egypt, the macro-economic situation has resulted in restrictions in repatriation of US dollars.  As a result, investment will remain in line with collections and foreign currency availability.  The Company will be taking appropriate measures to ensure recovery of all delayed payments as soon as possible.

(Source: Dana Gas)

Dana Gas PJSC has announced its financial results for the half year ended 30 June 2022.

In the first six months of the year, the Company generated a net profit of AED 407 million ($111mm) or 5.8 fils per share, an 82% increase compared to an adjusted net profit (excluding reversal of impairment) of AED 225 million ($61mm) in H 1 2021.

The gains in Dana Gas's profitability in the first half were driven by elevated hydrocarbon prices, the Company's continued commitment to maintaining a low-cost base and strong operational performance in the Kurdistan Region of Iraq (KRI).

The Company's revenue for the first six months of the year increased 31% to AED 1,041 million ($284mm) as compared to AED 792 million ($216mm) in H1 2021 and its operating costs dropped 16%. The Company's realized prices during the first half of the year averaged $87/bbl for condensate and $44/boe for LPG compared to $48/bbl and $32/boe respectively in H1 2021.

Despite the challenging security situation, the Company's current operations in the KRI have continued uninterrupted. Production from the KRI increased 1% in the first half and the KM250 expansion project has progressed well. During the first half, drilling of the project's first development well was completed, and drilling operations for the second well are currently in progress. Whilst EPC construction work on KM 250 was suspended in June amid heightened security concerns, the Company is working with the authorities to address security concerns and to resume construction.

Given the strong operational and financial performance the Board expects to maintain its semi-annual dividend payment in keeping with the Company's dividend policy.   The interim dividend will be decided by the Board at its meeting in September.

Dr Patrick Allman-Ward (pictured), CEO of Dana Gas, commented:

"Dana Gas delivered strong half year results, supported by our robust operational performance, low cost base and favourable energy market conditions. Despite an increased uncertainty around the global economy amid high inflation, the outlook for the remainder of 2022 is still encouraging with both energy prices and demand remaining high."

Operations & Production

The Group's overall production in H1 2022 was  61,100 boepd, a 5% reduction from 64,000 boepd in H1 2021. This was due to a 9% production drop in Egypt mainly as a result of natural field decline. Production output in the KRI increased by 1%, with production averaging 34,500 boepd in H1 2022 versus 34,300 in H1 2021.

Operations have continued as normal during the period. Heightened uncertainty in the region and subsequent precautionary security measures have impacted the Khor Mor expansion project. As a result, the KM250 project remains on temporary suspension. The Company and its partners are working closely with the KRG to address all concerns and all parties remain committed to implementing the expansion project and resume construction activities as soon as possible.

Liquidity and Collections

The Company's cash position at the end of H1 2022 stands AED 759 million ($207mm) including AED 436 million ($119mm) held at the Pearl level.

The Group collected a total of AED 660 million ($180 mm) during the H1 2022, with the KRI and Egypt contributing AED 495 million ($135mm) and AED 165 million ($45mm) respectively.

(Source: Dana Gas)

Dana Gas and its partner, Crescent Petroleum, have reported record sales gas production from their operations in the Kurdistan Region of Iraq (KRI), reaching 452 million cubic feet of gas per day (MMscf/d) at the end of 2021.

The production milestone is the culmination of numerous process improvements at the Khor Mor gas plant, including a bypass project completed in 2020 as well as a de-bottlenecking programme earlier in 2018. Together, the process improvements have grown the production by 50% from 305 MMscf/d in 2018.

Dana Gas and Crescent Petroleum jointly operate the Khor Mor and Chemchemal gas fields on behalf of the Pearl Petroleum consortium, supplying the gas which enables much needed electricity generation in the KRI, and also producing close to 16,000 barrels of condensate and 1,000 tonnes of LPG per day. The successful process improvements will be reinforced by the KM250 expansion project at the plant which is currently under implementation, and will increase total capacity by an additional 55% to 700 MMscf/d by April 2023.

Major works for the US$630 million KM250 expansion project resumed in April, 2021 after a delay of one year due to the COVID pandemic. The project is now on track for the new target start date of April 2023. As part of the expansion works, the Company is also preparing to drill up to five development wells, which are scheduled to commence production in March 2022.

The KM250 Gas Expansion Project is supported by a $250 million financing agreement for 7 years with the U.S. International Development Finance Corporation (DFC) which was announced in September 2021. After completion of the KM250 project, the partners also plan a further KM500 train that would raise production to almost 1 billion cubic feet per day to meet rising demand for cleaner burning natural gas and electricity generation in the Kurdistan Region and all of Iraq.

Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said:

"The achievement of this production milestone underscores the progress we continue to make at Khor Mor to meet the rapidly growing demand for natural gas in the KRI. Despite the challenges the whole world has faced over the past two years, we are proud to have continued delivering uninterrupted supply of clean-burning natural gas to support the KRI economy and enable a healthy recovery. Meanwhile our major expansion plans at the Khor Mor and Chemchemal fields to target 1 billion cubic feet per day in the coming few years will enable improved services across the region for years to come."

Dr Patrick Allman-Ward (pictured), CEO of Dana Gas, said:

"This milestone is testament to our people and their hard work making consistent production growth possible at our Khor Mor gas plant. Our continued investments since 2018, notably the Khor Mor de-bottlenecking and bypass projects, have allowed us to deliver reliable supplies of clean energy to support the KRI economy and its people, with enhanced economic and environmental benefits which will increase as we further grow production."

Total investment by the Pearl Petroleum consortium exceeds US$2.3 billion to date, with total cumulative production of over 360 million barrels of oil equivalent (boe) of natural gas and liquids. The uninterrupted supply of gas to power plants in Erbil, Chemchemal and Bazian provides over 80% of the KRI's power generation and has resulted in significant fuel cost savings through substitution of diesel representing both environmental and economic benefits for the Kurdistan Region and Iraq as a whole.

The displacement of diesel fuel for power generation in the KRI with gas has also enabled emissions savings of 42 million tonnes of CO2, thereby making a major contribution to reducing greenhouse gas emissions and reducing local air pollution in the region as well as supporting the transition to better energy sources to tackle global climate change.

(Source: Dana Gas)

Pearl Petroleum, the consortium led by Dana Gas and Crescent Petroleum of the UAE, has signed a $250 million financing agreement with the U.S. International Development Finance Corporation (DFC) to support the gas expansion works currently under way at the Khor Mor gas plant in the Kurdistan Region of Iraq (KRI).

DFC is the development finance arm of the U.S government and proceeds from the 7-year DFC financing will support an increase in gas production capacity by 50% to 690 million standard cubic feet (scf)/day to meet rising demand for clean natural gas for electricity generation and industry in the KRI. The total project cost is $630 million and the remaining financing has already been secured through a regional bank facility and the EPC contractor.

The KM-250 project is the first stage of a two-train expansion project at Khor Mor that aims to boost total production capacity to approach 1 billion scf/day. Work resumed in April 2021 after onsite construction was halted last year due to the COVID pandemic and is currently on track for completion by April 2023.

Total investment by Pearl Petroleum at Khor Mor to date exceeds US$2.1 billion with total cumulative production of over 341 million barrels of oil equivalent (boe) in natural gas and liquids. The uninterrupted supply of gas to power plants in Erbil, Chemchemal and Bazian has resulted in significant fuel cost savings and economic benefits for the Kurdistan Region and Iraq as a whole.

The gas produced to date has enabled emissions savings of 42 million tonnes of CO2 by displacing diesel fuel in power generation in the KRI, thereby making a major contribution to reducing greenhouse gas emissions and local air pollution in the region as well as supporting the transition to better energy sources to tackle global climate change.

Between 2018 and 2021, the Khor Mor Gas Plant also benefitted from a 45% production increase through an optimization of the facility bringing current total production to 106,000 barrels of oil equivalent per day (boepd). The project is today the largest regional private sector upstream gas operation in Iraq.

Mr. Majid Jafar (pictured), CEO of Crescent Petroleum and Board Managing Director of Dana Gas, commented:

"This financing agreement with DFC underscores the importance of developing the natural gas resources in the KRI to support regional economic development and growth. Despite the global challenges presented by the COVID pandemic, we have continued to maintain our record of uninterrupted operations and even managed to grow production. The DFC agreement is a testament to our successful track record and further highlights the potential of these resources and the bright future for the KRI."

Dr. Patrick Allman-Ward, CEO of Dana Gas, added:

"With our partners in Pearl Petroleum we are proud to be further developing the gas sector of the Kurdistan Region of Iraq, delivering expanded supply of cleaner energy, and supporting local economic development. This agreement underscores our continued confidence in the region and its long-term prospects."

Mr. Dev Jagadesan, Acting CEO of DFC, said:

"DFC's investment in the Khor Mor expansion will substantially increase access to energy for people all across the Kurdistan Region of Iraq. This highly developmental project represents the United States' continuing investment in the KRI."

In April 2007, Dana Gas and Crescent Petroleum entered into an agreement with the KRG for exclusive rights to appraise, develop, produce, market, and sell petroleum from the Khor Mor and Chemchemal fields in the KRI. Production from a newly built plant at Khor Mor began just 15 months later, in October 2008, an industry record. In 2009, Pearl Petroleum was formed as a consortium with Dana Gas and Crescent Petroleum as the majority shareholders, and with OMV, MOL, and RWE joining the consortium subsequently with a 10% share each.

Full-time staff at the operation number over 500, with over 85% local staff, including many in senior management positions. The companies have implemented a corporate social responsibility program to support local communities with equipment and supplies to deal with the COVID pandemic such as ventilators, sanitizers and protection equipment, in addition to a pledge to donate 100,000 vaccines to be administered in those local communities. This is in addition to ongoing support with local education, health and power supply as well as humanitarian aid for persons displaced from conflict zones as well as orphans. These initiatives assist the local communities in improving their standard of living, health, well-being, security and stability and the development of human capital.

(Source: Dana Gas)

By John Lee.

Dana Gas PJSC announced that its H1 2021 collections from the Kurdistan Region of Iraq (KRI), and Egypt have increased 106% year-on-year to $185 million (AED 678m), the highest level in more than five years.

Dana Gas, which owns a 35% stake in Pearl Petroleum, saw its share of collections from sales of condensate, LPG and gas in the KRI jump 85% to $87 million in the first half 2021 as compared to $47 million in the same period the previous year.

The Company 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, EBITDA $74 million, Net Income $57.4 million, Cash Balances $61 million and Gross Debt $93 million.

The Company share of total KM 250 expansion CAPEX is $220 million, which will be funded at the Pearl level. Dana Gas share of Pearl Petroleum production for the first half 2021 averaged 150 MMscf/d of gas, 5,250 bbls/d condensate and 350 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% increase.

Dr Patrick Allman-Ward, CEO of Dana Gas, said:

"This is one of our 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 Egypt, we continue to work diligently to maintain production and to prepare for drilling our exciting exploration well in our offshore Block 6 Concession Area which holds material potential of over 20 Tcf of gas resources."

(Source: Dana Gas)

Dana Gas and its partner Crescent Petroleum have announced the full resumption of the expansion project at the Khor Mor field in the Kurdistan Region of Iraq (KRI), which the companies jointly operate on behalf of the Pearl Petroleum consortium.

The KM250 expansion involves further investment of US$600 million to add 250 million cubic feet per day of much-needed additional gas production to supply the local power stations. The project construction work had been put on hold due to the COVID pandemic but is now on track for a new target start date of April 2023, after agreement to lift the force majeure with both the Kurdistan Regional Government (KRG) and the contractor [Exterran].

Under a Gas Sales agreement signed in March 2019 with the KRG Ministry of Natural Resources, Pearl Petroleum will sell the additional quantities of gas to supply the power stations with affordable and environmentally cleaner fuel, and further enhance electricity supplies. Today over 80% of the KRI's electricity generation is enabled by the gas produced by the companies.

Current production at the Khor Mor field is 440 million cubic feet per day of natural gas as well as 15,700 barrels per day of condensate and 1,020 tonnes of liquified petroleum gas (LPG), or a total of 110,400 barrels of oil equivalent (boe) per day, making it the largest overall producer in the KRI and the largest private sector upstream gas operation in Iraq. After the KM250 train, there are plans to add a further KM500 train which would take production to almost 1 billion cubic feet per day by 2024.

Total investment to date exceeds US$2 billion with total cumulative production of over 332 million barrels of oil equivalent (boe), which has resulted in significant fuel cost savings and economic benefits for the Kurdistan Region and Iraq as a whole. In addition 43 million tonnes of CO2 emissions have been eliminated by displacing liquid fuels, which in turn has made a positive contribution to tackling global climate change as well as reducing local air pollution.

Mr. Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, commented:

"After a year of delay due to the COVID pandemic, we are pleased to fully resume the KM250 expansion project to invest US$600 million and grow the gas production almost 60% within 2 years from now, supporting the local electricity provision even further. Despite the challenges the whole world has faced over the past year we have kept our operations safe and managed to grow production and we are grateful to all our staff and to the KRG for its support."

Dr. Patrick Allman-Ward, CEO of Dana Gas, added:

"With our partners in Pearl Petroleum we are proud to be investing further in the gas sector of the Kurdistan Region of Iraq, delivering a reliable source of cleaner energy, and supporting local economic development. The continuing receipt of payments in a timely manner gives confidence for our continued investment commitment as we enter the next exciting phase of growth with the Khor Mor expansion, which will be carried out under strict health protocols to ensure the safety of our staff and service providers."

(Source: Dana Gas)