Latest news with #DanaGas
Rudaw Net
09-05-2025
- Business
- Rudaw Net
Oil association urges renewed efforts to resume Kurdish exports
Also in ECONOMY Iraq tells Turkey it needs more time to restart Kurdish oil exports Dana Gas says to begin production at Chamchamal field next year KRG calls for restart of Kurdish oil exports 'as soon as possible' KRG transfers control of digital salary payment program to finance ministry A+ A- ERBIL, Kurdistan Region - Oil producers in the Kurdistan Region on Sunday called for increased efforts to resume the long-halted Kurdish oil exports through the Iraq-Turkey pipeline (ITP). In a statement, the Association of the Petroleum Industry of Kurdistan (APIKUR) said that their latest meeting with the Iraqi government and the Kurdistan Regional Government last week 'did not result in any agreements.' 'The GoI [Government of Iraq] continues to publicly express the importance of oil exports through the ITP but engagements thus far have been limited and unproductive. APIKUR calls for redoubling of efforts to find mutually beneficial solutions,' the statement said. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014. Despite ongoing talks between Erbil, Baghdad, Ankara, and oil producers - with added pressure from the United States - the exports remain stalled, with their suspension costing Iraq billions of dollars in revenue. 'APIKUR member companies have repeatedly proposed solutions that satisfy, both, Iraq's Budget Law and comply with international oil company contracts which have been validated in Iraq's courts,' said APIKUR spokesperson Myles Caggins. 'We regret the lack of progress, nevertheless we will continue to push for a resumption [of] oil exports.' The oil association also lamented that 'no substantial discussions' have taken place with Baghdad and Erbil on their proposals for payment mechanisms, stressing that multiple recommendations have gone unaccepted. 'APIKUR member companies remain ready to immediately resume exports through ITP once binding agreements are in place that ensure payment certainty for such exports in like with each IOC's existing contractual terms,' the statement added. In early April, APIKUR said that their investments have been 'fundamentally harmed' by the closure of the pipeline and that they are in a 'hurry' to resume the oil exports, for which they have been 'at forefront to push negotiations with Baghdad.' In early February, the Iraqi parliament approved amendments to the federal budget law, authorizing a $16-per-barrel fee for production and transport costs in the Kurdistan Region - a move seen as a crucial step toward restarting exports. The amendments also require both the federal government and the KRG to establish an international technical consultancy within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If an agreement cannot be reached, the federal council of ministers will appoint the consultancy.
Rudaw Net
09-05-2025
- Business
- Rudaw Net
Dana Gas says to begin production at Chamchamal field next year
Also in ECONOMY Iraq tells Turkey it needs more time to restart Kurdish oil exports KRG calls for restart of Kurdish oil exports 'as soon as possible' Oil association urges renewed efforts to resume Kurdish exports KRG transfers control of digital salary payment program to finance ministry A+ A- ERBIL, Kurdistan Region - The UAE-based Dana Gas on Thursday announced that it has begun development activities at the key Chamchamal gas field in Sulaimani province alongside its consortium Pearl Petroleum, and that production is set to commence next year. 'Pearl Petroleum has initiated first phase development activities at Chemchemal, one of Iraq's largest world-class and undeveloped gas fields. A $160 million investment program is now underway to drill three wells and install an extended well test facility,' Dana Gas said in a disclosure on the Abu Dhabi Securities Exchange (ADX). The Chamchamal gas field and the nearby Khor Mor field, which Dana Gas also operates, are among Iraq's largest energy fields. According to the disclosure, the Chamchamal field is set to produce 75 million standard cubic feet of gas per day (mmscf/d) by mid-2026. The company also recorded $43 million in profits since the beginning of the year - a 13 percent increase from the same period last year - despite lower oil prices. 'Daily gas production at Khor Mor reached 525 million standard cubic feet, marking a 75% increase since 2017. The field continues to support over 75% of the Kurdistan Region's power generation needs,' Dana Gas said. Last month, Dana Gas announced that a mega expansion project at Khor Mor, labeled KM250, is set to be completed early next year, ahead of schedule. The expansion is set to significantly boost the Kurdistan Region's electricity generation capabilities. 'Once fully operational, KM250 is expected to add 250 MMscf/d of processing capacity, increasing Pearl Petroleum's production by 50%, while significantly boosting Dana Gas's financial performance and cash flow,' it said. Crescent Petroleum and its affiliate, Dana Gas, struck a deal with the Kurdistan Regional Government (KRG) in 2007 to develop the Region's substantial gas resources. They also agreed to establish Kurdistan Gas City, a major new gas-utilization industrial complex to promote private sector investment. The KM250 expansion project is supported by a seven-year, $250 million financing agreement between Dana Gas and the US International Development Finance Cooperation. 'We achieved higher production in the KRI [Kurdistan Region of Iraq] while reducing our operational and finance costs. We also continue to make excellent progress on the KM250 expansion, and we remain on track to achieve first gas by Q1 2026,' said Dana Gas CEO Richard Hall. Located in Sulaimani's Chamchamal district, Khor Mor frequently comes under attack, reportedly by Iran-affiliated Iraqi militias taking advantage of its strategic and economic importance for the Kurdistan Region, leading to major power disruptions across the Region and hindering expansion projects at the site. A drone targeted the field in February but did not cause material damage or casualties. Sulaimani-based Kurdish counterterrorism forces blamed 'militia groups and outlaws' for the attack. In April of last year, a drone strike at the site killed four Yemeni nationals and injured several others who were repairing damage from a previous attack. The strike caused Dana Gas to suspend production temporarily. Dana Gas has also warned that attacks on Khor Mor directly impact the lives of the Kurdistan Region's citizens.
Rudaw Net
09-05-2025
- Business
- Rudaw Net
Iraq tells Turkey it needs more time to restart Kurdish oil exports
Also in ECONOMY Dana Gas says to begin production at Chamchamal field next year KRG calls for restart of Kurdish oil exports 'as soon as possible' Oil association urges renewed efforts to resume Kurdish exports KRG transfers control of digital salary payment program to finance ministry A+ A- ERBIL, Kurdistan Region - Iraqi Prime Minister Mohammed Shia' al-Sudani told Turkey that Baghdad needs more time to reach an agreement with oil companies about restarting Kurdistan Region's oil exports, Turkish Energy Minister Alparslan Bayraktar said on Thursday. 'Talks continue between Baghdad and Erbil. They have yet to reach an agreement. According to the information we received from Mr. Sudani and his delegation today, they still need time,' Bayraktar told the Turkish broadcaster CNN Turk following Sudani's meeting with Turkish President Recep Tayyip Erdogan in Ankara. Erdogan and Sudani signed several memoranda of understanding aimed at boosting trade, investment, and shared economic interests during the Iraqi leader's visit. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad that Ankara violated a 1973 pipeline agreement by allowing Erbil to export oil independently. Despite months of talks between Erbil, Baghdad, Ankara, and oil producers - with added pressure from the United States - the exports remain suspended, costing Iraq billions of dollars in lost revenue. Bayraktar said the Iraq-Turkey pipeline has the capacity to carry 1.5 million barrels of oil per day and that Ankara is interested in expanding oil and gas trade with Iraq, especially in Basra. "Iraq is our most natural partner. They are a partner with whom we can and do cooperate in every field. We are looking at three issues regarding energy. One is oil production. Another is our export of natural gas to power plants in Iraq. We also have significant cooperation regarding electricity, which we will increase further,' he told CNN Turk. The sticking points in negotiations on the oil exports are fees paid to oil producers and appointment of an international consultant. In early February, the Iraqi parliament approved amendments to the federal budget law, authorizing a $16-per-barrel fee for production and transport costs in the Kurdistan Region. The amendments also require the federal government and the Kurdistan Regional Government (KRG) to establish an international technical consultancy within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If they do not reach an agreement, the federal council of ministers will appoint the consultant. The spokesperson for the international oil companies operating in the Kurdistan Region told Rudaw on April 29 that Baghdad must provide written documentation of the international consultant's audit of production and costs. "We have been very clear. We have stated publicly, we have stated privately what our conditions are for resuming oil exports. And now is the time for the government of Iraq to share their view and produce written statements of work for the international consultant. And as soon as we have those agreements written, we will be ready to resume oil exports," said Myles Caggins, spokesperson for the Association of the Petroleum Industry of Kurdistan (APIKUR).
Trade Arabia
08-05-2025
- Business
- Trade Arabia
Dana Gas reports 13pc increase in net profit for Q1
Dana Gas reported a net profit of AED 158 million ($43 million) for Q1 2025, a 13% increase compared to AED 140 million ($38 million) in the same period last year, despite lower oil prices. The increase in earnings was driven by stronger gas pricing in Egypt following the Consolidation Concession Agreement, lower depreciation, depletion, and amortisation (DDA) charges, along with reduced finance costs. Revenue for Q1 2025 stood at AED 334 million ($91 million), compared to AED 356 million ($97 million) in Q1 2024. The year-on-year decline was primarily due to lower production in Egypt coupled with lower realised hydrocarbon prices, however partially offset by improved gas pricing in Egypt and higher condensate price realization in the Kurdistan Region of Iraq (KRI). KURDISTAN REGION OF IRAQ Production in the KRI remained strong in the first quarter of 2025. In early March, Dana Gas and its partner Crescent Petroleum announced that cumulative production from the Khor Mor field had reached 500 million barrels of oil equivalent, reflecting the strength and consistency of operations since 2008. Daily gas production at Khor Mor reached 525 million standard cubic feet, marking a 75% increase since 2017. The field continues to support over 75% of the Kurdistan Region's power generation needs. In April, production levels at the Khor Mor plant were reduced to carry out planned maintenance activities, ensuring the facility's continued reliability and long-term operational performance. This reduction will be reflected in the Company's Q2 results. Construction of the KM250 expansion project is now progressing on an accelerated schedule, with first gas expected in Q1 2026. Once fully operational, KM250 is expected to add 250 MMscf/d of processing capacity, increasing Pearl Petroleum's production by 50%, while significantly boosting Dana Gas's financial performance and cash flow. The project includes the addition of 7,000 barrels per day of condensate and 460 tonnes per day of LPG. Additionally, Pearl Petroleum has initiated first phase development activities at Chemchemal, one of Iraq's largest world-class and undeveloped gas fields. A $160 million investment program is now underway to drill three wells and install an extended well test facility. Production of up to 75 MMscfd is targeted for the second half of 2026. EGYPT In Egypt, Dana Gas continues to implement its post-Consolidation Agreement investment program, co millionitting to invest $100 million over the next two years to drill 11 new wells. The Company plans to drill 3 wells this year, with drilling operations for the first well to begin in May 2025 and spudding expected in June 2025. Despite lower production levels, Dana Gas benefited from improved realized gas pricing following the Consolidation Agreement, helping to support cash flow and future investment plans. The ongoing program aims to increase gas recovery by 80 billion cubic feet and help mitigate natural field declines. The additional gas will also generate significant cost savings of over $1 billion for Egypt's economy by reducing reliance on imported LNG and fuel oil. Richard Hall, CEO of Dana Gas, co millionented: 'We entered 2025 with strong momentum following a transformational year for the business, and in the first quarter we demonstrated our ability to adapt to current market trends. Despite softer oil prices, we have increased our profitability and maintained our operational and strategic progress. We achieved higher production in the KRI while reducing our operational and finance costs. We also continue to make excellent progress on the KM250 expansion, and we remain on track to achieve first gas by Q1 2026. Meanwhile, our drilling program is underway in Egypt, and the Board's decision to resume sustainable dividend payments reflects the strength of our financial position and positive future outlook. We remain focused on execution and confident in the opportunities ahead to create lasting value for all our stakeholders.' Production in the KRI increased by 3% in Q1 2025 to 39,650 boepd, supported by continued strong demand from local power stations. The Khor Mor field continues to perform strongly, with cumulative output surpassing 500 million barrels of oil equivalent since production began at the field. Group production averaged 52,200 boepd during the quarter, compared to 56,750 boepd in Q1 2024. In Egypt, production declined to 12,550 boepd, mainly due to natural field declines and the impact of a planned maintenance shutdown. However, drilling activities under the Consolidated Concession Agreement are underway and expected to support future production levels. As of 31 March 2025, Dana Gas's consolidated cash balance stood at AED 1.4 billion ($373 million), including AED 784 million ($214 million) held at the Pearl Petroleum level. The Company's total debt remained stable at AED 1,045 million ($285 million). In April 2025, shareholders approved a cash dividend of AED 385 million ($105 million) for FY 2024, reflecting confidence in Dana Gas's financial strength and cash flow visibility. Total collections for the quarter reached AED 257 million ($70 million), compared to AED 279 million ($76 million) in Q1 2024 reflecting a 100% collection rate in the KRI and 92% in Egypt.
Zawya
08-05-2025
- Business
- Zawya
Dana Gas says work progressing at fast pace at Iraq's KM250 gas field
UAE-based energy company Dana Gas said that work on the KM250 gas field in the Khor Mor area is progressing at an accelerated pace, with first gas expected in the first quarter of 2026. Once fully operational, the project is expected to add 250 million standard cubic feet per day (MMSCFD) of processing capacity, boosting Pearl Petroleum's production by 50 percent, the company said in its first quarter 2025 financial report. The project includes the addition of 7,000 barrels per day of condensate and 460 tonnes per day of LPG. In September 2024, Pearl Petroleum took over full responsibility for the KM250 expansion project following the termination of the original EPC contractor. Construction resumed in December. Additionally, Pearl Petroleum launched its initial development at Chemchemal, one of Iraq's largest undeveloped gas fields. A $160 million investment programme is now underway to drill three wells and install an extended well test facility. Production of up to 75 MMSCFD is targeted for the second half of 2026. In Egypt, Dana Gas committed to investing $100 million over the next two years to drill 11 new wells. The company plans to drill three wells this year, with drilling operations for the first well to begin in May 2025 and spudding expected in June 2025, the statement said. (Writing by P Deol; Editing by Anoop Menon) (
