Dana Gas has announced that its share of Pearl Petroleum’s collections from the sale of condensate, LPG and gas in the Kurdistan Region of Iraq (KRI) rose 74 percent in the first half of 2019.

The company, which owns a 35 percent stake in Pearl Petroleum, saw its share of the collections increase to $80.0 million (AED 293 mm) in the first half compared to $46 million (AED 169 mm) the first half of 2018.

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

We are thankful for the Kurdistan Regional Government’s prompt payment of receivables.

“Our flourishing partnership will bring about tangible benefits for the region, including the creation of more jobs and greater confidence in its hydrocarbon sector, which will ensure a flow of revenue into much-needed infrastructure.

“We look forward to strengthening our collaboration with the Kurdistan Regional Government in the years to come.” 

(Source: Dana Gas)

Dana Gas has announced that its share of Pearl Petroleum’s collections from the sale of condensate, LPG and gas in the Kurdistan Region of Iraq (KRI) rose 74 percent in the first half of 2019.

The company, which owns a 35 percent stake in Pearl Petroleum, saw its share of the collections increase to $80.0 million (AED 293 mm) in the first half compared to $46 million (AED 169 mm) the first half of 2018.

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

We are thankful for the Kurdistan Regional Government’s prompt payment of receivables.

“Our flourishing partnership will bring about tangible benefits for the region, including the creation of more jobs and greater confidence in its hydrocarbon sector, which will ensure a flow of revenue into much-needed infrastructure.

“We look forward to strengthening our collaboration with the Kurdistan Regional Government in the years to come.” 

(Source: Dana Gas)

Dana Gas has announced that its share of the proved plus probable (2P) hydrocarbon reserves at Pearl Petroleum Company‘s Khor Mor (pictured) and Chemchemal fields in the Kurdistan Region of Iraq (KRI) have increased by 10 percent following the recent certification of reserves by Gaffney Cline Associates (‘GCA’).

2P Reserves Upgrade

The independently audited report, prepared by Gaffney Cline on behalf of Pearl Petroleum, showed that the total share for Dana Gas (35% shareholder in Pearl Petroleum), is equivalent to 1,087 million barrels of oil equivalent (MMboe), up from 990 MMboe when GCA first certified the fields in April 2016.

This confirms that the fields located in the KRI could be the biggest gas fields in the whole of Iraq. The reserves were boosted in part by the booking of oil reserves in the Khor Mor Field for the first time.

GCA’s most recent report confirmed that Dana Gas’s share of the Khor Mor and Chemchemal 2P reserves was 4.4 trillion cubic feet gas (2016: 5.3 Tcf), 136 million barrels of condensate (2016: 109 MMbbls), 13.3 million metric tonnes LPG and 18 MMbls of oil, the equivalent of 1,087 MMboe, as compared to 990 MMboe in April 2016.

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

“The Gaffney Cline report has independently confirmed Dana Gas’ 2P reserves in our KRI assets at over 1 billion barrels of oil equivalent and our belief that the Khor Mor and Chemchemal Fields will most likely be the biggest gas fields, not just in the Kurdistan Region Iraq, but the whole of Iraq, making them world-class assets. 

“It is also satisfying to see that our auditors have formally booked oil reserves for the first time in Khor Mor. We believe that this is just the tip of the iceberg confirming our estimate of oil resource potential of over 7 billion barrels.

“These additional resource declarations will underpin our future development plans which will provide a reliable source of energy to meet the needs of electricity generation as well as industrial development in the region.”

Future Development

Earlier in the year, Pearl Petroleum signed a 20-year gas sale agreement with the Kurdistan Regional Government (‘KRG’) that will facilitate the production and sale of an additional 250 MMscf/d of gas.

Pearl Petroleum’s expansion plan will see output increase to 650 MMscf/day in 2022, and then to 900 MMscf/day by 2023 from the current 400 MMscf/day.

With the price of oil ranging between $60 to $70 per barrel, each of these two new gas production trains will generate between $175 to $200 million to the Company’s share of revenue and project’s cash flows per annum.

(Source: Dana Gas)

By John Lee.

Pearl Petroleum is reportedly planning to raise additional funding for its drilling and development in Iraqi Kurdistan,

According to Reuters, Patrick Allman-Ward, the chief executive of Dana Gas, which is the majority owner of Pearl Petroleum, told reporters that the funding will “comprise a mix of bank debt, a bond, Exim bank financing as well as contractor and vendor financing.

The company is developing that Khor Mor and Chemchemal gas fields in Iraqi Kurdistan.

(Source: Reuters)

By John Lee.

Sharjah-based Dana Gas has announces that during Q1 2019, Pearl Petroleum has received $112 million (AED 411mm) from the sale of condensate, LPG and gas in the Kurdistan Region of Iraq (KRI).

Dana Gas is a 35% shareholder in Pearl Petroleum and accordingly, its share of such receipts by Pearl Petroleum is $39 million (AED 143mm).

This presents a 117% increase compared to the Company’s Q1 2018 share of collections which stood at $18 million. As of today, Pearl Petroleum has no overdue receivables in the KRI.

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

“We have had a very positive start to year in the KRI. Our debottlenecking project which we completed in October 2018 has increased our production output by 30% to 400 MMscf/d. We have begun to see the impact of the additional production on our Q1 collection, which has doubled.”

In February of this year, Pearl Petroleum signed a new 20-year Gas Sales Agreement (GSA) with the Kurdistan Regional Government (KRG) to enable production and sales of an additional 250 MMscf/d. The Consortium aims to bring this production on-stream by 2021 as part of their expansion plans to raise output from the current 400 MMscf/day to 650 MMscf/day in 2021, and then to 900 MMscf/day by 2022.

(Source: Dana Gas)

By John Lee.

Sharjah-based Dana Gas has announced that its average production for Q1 2019 has increased by 6% year-on-year to 68,700 boepd from 65,000 boepd in Q1 2018.

The first quarter production increase was led by the Kurdistan Region of Iraq (KRI), which leapt to 32,750 boepd in Q1 2019 from 26,300 boepd in Q1 2018.

This increase was principally due to additional production from the completed debottlenecking project that came on-stream in October 2018 and took gas production in the KRI from 300 MMscf/d to 400 MMscf/d, an increase of over 30%.

On a quarter by quarter comparison, Q1 2019 production grew by 5% from Q4 2018, reflecting the increase in production from the KRI and supported by having brought the Balsam-8 well in Egypt on-stream in Q4.

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

The two major growth projects completed in 2018 – the debottlenecking project in the KRI and the Balsam-8 well in Egypt – have proven to be materially value accretive both operationally and financially. 

“Our production numbers are up 6% in the first quarter 2019 and we expect this increase in production to have a positive impact on the Company’s revenues since we are now realising gas sales in the KRI and we will be benefiting from the steady increase in oil prices since Q4 2018.

(Source: Dana Gas)

Pearl Petroleum Company Limited, the consortium led by Crescent Petroleum and Dana Gas of the UAE, has signed a new 20-year Gas Sales Agreement (GSA) with the Kurdistan Regional Government (KRG) to enable production and sales of an additional 250 MMscf/day that the consortium aims to produce by 2021 as part of their expansion plans in the Kurdistan Region of Iraq (KRI) in order to boost much needed local domestic electricity generation.

Pursuant to the Settlement Agreement reached between the parties in August 2017, this new gas sales agreement was signed on 19th February 2019 by Dr. Ashti Hawrami, Minister of Natural Resources on behalf of the Kurdistan Regional Government, and Mr. Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, on behalf of Pearl Petroleum.

All approvals for the agreement, including by the the Kurdistan Region Council for Oil & Gas Affairs and the Board of Pearl Petroleum, have since been granted, with  project work now under implementation.

The Kurdistan Gas Project was established in 2007 as Dana Gas and Crescent Petroleum entered into agreement with the Kurdistan Regional Government (KRG) for certain exclusive rights to appraise, develop, produce, market, and sell petroleum from the Khor Mor and Chemchemal fields in the Kurdistan Region of Iraq (KRI).

Production from the newly built plant in Khor Mor began just 15 months later, in October 2008. In 2009, Pearl Petroleum was formed as a consortium with Dana Gas and Crescent Petroleum as shareholders, and with OMV, MOL, and RWE joining the consortium subsequently with a 10% share each.

The $700 million expansion underway at the Khor Mor plant will include the addition of two new production trains at the Khor Mor plant, as well as drilling of new wells with plans to raise production from the current 400 MMscf/day to reach 650 MMscf/day by 2021 based on this latest GSA, and then to 900 MMscf/day beyond that by 2022.

This follows the 30% production increase from debottlenecking throughput at the Khor Mor plant, which brought current total production to 106,000 barrels of oil equivalent per day (boepd), making it the largest regional private sector upstream gas operation in Iraq today.

Gas sales commenced late in 2018 under a gas sales agreement signed in January of that year, and all payments have been received in a timely manner in full, which gives confidence for the investment and expansion plans currently underway by the Consortium. The Kurdistan Gas Project, which recently commemorated 10 years of continuous production, supplies natural gas from the Khor Mor field by pipeline to power plants in Bazian, Chemchemal and Erbil, as well as LPG and condensate, which are sold in the local markets.

In August 2017, Pearl Petroleum reached a full and final settlement with the KRG of the arbitration between them, including settlement of past receivables and committing to expand their investment and operations in the region. These expansion plans include the multi-well drilling program currently underway in both the Khor Mor & Chemchemal fields, as well as installation of additional gas processing and liquids extraction facilities. The fields are operated jointly by Crescent Petroleum and Dana Gas on behalf of Pearl Petroleum.

Total investment in the Kurdistan Gas Project to date exceeds $1.6 billion, with total cumulative production of over 260 million barrels of oil equivalent (boe), delivering billions of dollars in fuel cost savings and wider economic benefits for the Kurdistan Region and Iraq as a whole. That impact will continue to grow as production capacity expands in the coming years.

Dr. Ashti Hawrami, Minister of Natural Resources of the Kurdistan Regional Government (KRG) said:

“This agreement is an important step for us as we deliver improved services to the people of the Kurdistan Region of Iraq through enhanced electricity generation from the increase in gas production by the Consortium. The Kurdistan Region holds significant reserves of gas and the KRG is committed to playing a positive role in the growing gas and electricity needs of Iraq and the region.”

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

“This gas sales agreement opens a new chapter in the expansion of the Kurdistan Gas Project that will see a further investment of over $700 million in coming years to expand production up to 900 MMscf/day, further fueling the Region’s economic growth and development. We look forward to developing the significant resources from these important fields, for the benefit of the Kurdistan Region and all of Iraq.”

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

“Dana Gas and our partners in Pearl Petroleum are particularly 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 our second decade of production.”

As part of its work in the KRI, Pearl has implemented a corporate social responsibility program to support local communities, including providing school supplies, drinking water treatment, generators and fuel enabling 24-hour electricity for local villages, mobile medical units, and youth sports facilities, as well as financial support for 1,000 orphans from the Chemchemal area in partnership with a local charity Foundation.

These initiatives are assisting the local communities in improving their standard of living, health, well-being, security and stability and the development of human capital.

(Source: Dana Gas)

Dana Gas PJSC, the Middle East’s largest regional private sector natural gas company, announces that as a result of the ramp up of production from its debottlenecking project in the Kurdistan region of Iraq, its group production reached 70,000 barrels of oil per day (boepd) on the 19 November and has since been sustained above that level.

The Company’s principal operations are in the Kurdistan Region of Iraq (KRI) and Egypt, where the drilling of the Balsam-8 well has also led to a sharp increase in overall production. Current group production, in excess of 70,000 boepd, represents a significant increase compared to the Company’s 9M 2018 average of 62,250 boepd.

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

“Production in excess of 70,000 barrels oil equivalent per day is a great achievement for Dana Gas. At the start of the year, we planned a drilling programme in Egypt and a debottlenecking project in the KRI that would significantly increase production. We have successfully delivered both projects. The increase in production will help offset the lower realised hydrocarbon prices that have impacted the oil industry in the last quarter and support growth in our revenue and net profit figures for the full year 2018 and beyond.

“We remain excited about the long-term future of our world-class assets in the KRI. Further investment is underway to double current production to 900 MMscf/d over the coming three years, together with an increase in condensate to 36,000 bpd and LPG to 1200 MTpd.”

In the fourth quarter 2018, Dana Gas Egypt completed the drilling of the Balsam-8 well and tied it in to the network. The well was completed ahead of schedule and under budget, adding over 5,000 boepd to the Company’s output.

In the KRI, the Company announced a 30% increase in production capacity at the Khor Mor field (pictured), which it jointly operates on behalf of Pearl Petroleum. The expansion of the gas processing plant consisted of a series of plant additions and modifications to de-bottleneck throughput, raising output capacity from 305 MMscf/d of natural gas to 400 MMscf/d, with over 15,000 barrels per day of condensate. This is expected to add up to $50 million annually to the top line without incurring any additional operational costs.

The Company recently posted a strong set of quarterly financial results. 9M 2018 revenue increased 6% to $351 million (AED1,287 mm) from $330 million (AED1,210 mm) over the same period last year and 9M 2018 net profit was $41 million (AED149 mm) versus a net loss of $6 million (AED22 mm) in 9M 2017, excluding one-off items.

(Source: Dana Gas)

Dana Gas and Crescent Petroleum Announce 30% Gas Production Increase in Kurdistan Region

Dana Gas, the Middle East’s leading publicly-listed regional natural gas company, and its partner Crescent Petroleum, have announced achievement of a 30% increase in production capacity at the Khor Mor field in the Kurdistan Region of Iraq, which the companies jointly operate on behalf of Pearl Petroleum.

This increase delivers much-needed gas supply to fuel power plants in the region, and marked a major milestone as the companies commemorate 10 years of continuous production in the region in a special ceremony with the Kurdistan Regional Government in Erbil.

The expansion at the Khor Mor gas processing plant consisted of a series of plant additions and modifications to de-bottleneck throughput, raising output capacity from 305 MMscfd of natural gas to 400 MMscfd, with over 15,000 barrels per day of condensate.

The Plant, which began operating in 2008, supplies natural gas from the Khor Mor field by pipeline to power plants in the towns of Chemchemal and Erbil, and will soon supply a new plant in Bazian. The Khor Mor Plant also produces LPG and NGL, which are sold and trucked to the local markets.

Under a Gas Sales agreement signed in January 2018 with the KRG Ministry of Natural Resources, Pearl Petroleum will sell the additional quantities of gas to supply the power stations with affordable, environmentally favourable fuel, and further enhance electricity supplies.

The plant expansion comes online as Pearl celebrates a decade of production in the KRI. At a ceremony in Erbil attended by Kurdish Regional Government Prime Minister Nechirvan Barzani, Minister of Natural Resources Dr. Ashti Hawrami, and other senior officials, Board Members and senior executives from the companies commemorated the partnership between the companies and the KRG in delivering progress and improved services to the people of the region over the past decade.

Total investment in the Kurdistan Gas Project to date exceeds $1.4 billion with total cumulative production over 250 million barrels of oil equivalent (boe), which has resulted in over $20 billion of fuel cost savings and economic benefits for the Kurdistan Region and Iraq as a whole. Further investment is underway to expand production to 900mmscfd per over the coming 3 years, together with associated liquids.

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

This production increase marks an important milestone as we also commemorate ten years of continuous production, and the beginning of a new chapter of expansion in operations and production which will see a further investment of over $600 million over the coming few years and a more than doubling of production again.

“The gas we have produced has led to significant fuel savings and social and economic value for the economy, and we hope to grow this in the years to come from the significant resources of these world class fields, for the benefit of the Kurdistan Region and all of Iraq.”

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

“Despite many challenges over the past ten years we are proud to have maintained our production levels and operations and now with the settlement of all past receivables last summer and continuous payments since then, we look forward to significantly growing production to meet the growing demand for gas and electricity in the Kurdistan Region and Iraq as a whole.”

In August 2017, Pearl Petroleum reached a full and final settlement with the KRG of the arbitration between them, including receiving $1 billion in cash from the KRG for past receivables and committing to expand their investment and operations in the region.

These expansion plans include a multi-well drilling program now underway in both the Khor Mor & Chemchemal fields, as well as installation of additional gas processing and liquids extraction facilities.

Operation full-time staff numbers are over 600 with over 80% local staff, and training programmes to increase this figure further. In addition, the companies has contributed to local communities with support for local power generation, education and healthcare facilities, as well as support programmes for internally displaced people in Iraqi.

The Kurdistan Gas Project was established in 2007 as Dana Gas and Crescent Petroleum entered into agreement with the Kurdistan Regional Government (KRG) for exclusive rights to appraise, develop, produce, market, and sell petroleum from the Khor Mor and Chemchemal fields in the Kurdistan Region of Iraq (KRI).

Production from the newly built plant in Khor Mor began 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 shareholders, and with OMV, MOL, and RWE joining the consortium subsequently with a 10% share each.

(Source: Dana Gas)

Crescent Petroleum and Dana Gas deliver vital support to AMAR IDP clinics

As Iraq’s security conditions have improved, international donors have turned their attention to other troubled parts of the world, leaving many IDP camps in the country on the brink of closure.

Thanks to the continued support of Crescent Petroleum and Dana Gas, however, AMAR have continued to deliver much needed healthcare and support to Khanke Camp’s 16,000 residents

Nearly 2 million Iraqis remain displaced within Iraq, a vast proportion of them still in camps for internally displaced people (IDPs). From victims of conflict who have lost homes and livelihoods to families too afraid to return to their homes after the violence of recent years IDPs remain among the most vulnerable population in the country.

After the trauma of violence and displacement, families in the camps continue to rely on the safe, supportive and nurturing environment in the camp to start rebuilding their lives. But with charitable funding drying up, many camp facilities, especially health care centres, are facing imminent closure.

Dana Gas and Crescent Petroleum, which have contributed considerably to causes within Iraq, remain committed to AMAR’s services in Khanke, delivering vital health and wellbeing services to the thousands of residents at the camp.

Crescent, one of the Middle East’s oldest and largest upstream oil companies, and Dana, one of the largest private-sector natural gas companies in the region, are committed to helping AMAR deliver vaccinations, antenatal care and child health monitoring at the camp.

IDPs are among the most vulnerable people in Iraq, but sadly they are often overlooked by donors,” said Majid Jafar, CEO of Crescent Petroleum. “We are proud to be partnering with AMAR to provide critical healthcare services and training to the people in Khanke camp.

A key part of the health programme at the camp are the Woman Health Volunteers (WHVs), who are the front line to identifying health and wellbeing issues among the residents and are trained to deliver health care when needed. Between April and June of this year, the WHVs made thousands of home visits to families at the camp, providing basic healthcare services and delivering health advice, in addition to providing mental health outreach. In all, the WHVs offered support and services to more than 15,000 people during the spring period.

One AMAR WHV, Thikra, for example, recently paid a visit to the Jamila family in the camp. One of the family’s sons had been showing distressing changes in behaviour, including fatigue, excessive sleep and weight gain. Thikra identified the signs of depression in the boy and confided in Mrs. Jamila to openly discuss her son’s symptoms. She then advised the mother to seek a medical assessment for boy’s the condition and set the family on the path to recovery.

Thikra’s work is funded by Dana and Crescent, and is emblematic of the kind of support the companies are funding and promoting in the community.

The companies also provide funds for vocational training programmes in the camps, including sewing and design, IT, and English lessons, providing residents the opportunity to develop skills that can boost their chances of finding employment or to set up their micro-business of their own.

Crescent Petroleum and Dana Gas are among the largest private foreign investors in Kurdistan. Their focus is on developing the region’s natural resources in sustainable way to deliver lasting benefits to local communities. Their US$1.1bn development of the Khor Mor gasfield provides the natural gas to power electricity plants in Erbil and Chamchamal, delivering 1,700 MW of electricity to over 4m people living in the region.

LPG Plant in Kor Mor

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

“We are committed to developing resources in Kurdistan to provide power to communities and build the structures for inclusive growth, as well as to tackle the economic and social factors that are a barrier to this development. We look forward to strengthening our partnership with AMAR in the future so that we can continue working towards these goals across the region.”

Other projects Dana and Crescent have funded in Kurdistan include renovating and supplying schools, funding hospitals and providing potable water to villages.

Baroness Nicholson, AMAR’s Founder and Chairperson said:

“It is vital that we continue to provide healthcare and education in the camps, as people living there continue to experience extreme deprivation. Thanks to the exceptional generosity of Dana and Crescent, we are able to do this in Khanke. We are very grateful to them for giving us the opportunity to bring relief and support to communities in real need.”

(Source: AMAR)