Latest news with #KM250
Rudaw Net
4 days ago
- Business
- Rudaw Net
Kurdistan Region eyes record gas output of over 1 billion cubic feet per day in 2025
Also in Opinions China's promise in the Kurdistan Region: A pragmatic partnership in the making Eleven years on, the Yazidi genocide continues in silence Tehran at a tipping point: The unraveling of the Iranian rial Turkish lira's rocky road: What rate cuts mean for its neighbors A+ A- It is planned that next week, the UAE-based Dana Gas and its partners will conduct the initial pre-production testing of the Khor Mor natural gas production expansion project, known as KM250. Subsequently, they will move to the production phase, increasing daily production by 250 million cubic feet of gas to 540 million cubic feet of gas for the company's operations at the Khor Mor field in Sulaimani province. This is set to bring natural gas production in the Kurdistan Region to over 1 billion cubic feet per day. According to Dana Gas's latest announcement, the KM250 project will be completed earlier than the announced timeframe, and initial work for the Chemchemal field has progressed, with the aim of producing 75 million cubic feet per day. This means that with just these two gas fields, from early next year, the Kurdistan Region will reach the production of 865 million cubic feet of natural gas per day. This will make the Khor Mor field one of the largest gas projects in the Middle East and North Africa region, comparable to the Khazzan gas project in Oman, Zohr in Egypt, and Leviathan in the Mediterranean Sea off Israel's coast. In mid-May, the Kurdistan Region's acting natural resources minister signed two major agreements in the gas and oil sectors in Washington, and indicated that the Iraqi-Kurdish oil company KAR Group produces 120-130 million cubic feet of gas from the Khurmala oil field. If the Miran and Topkhana fields also reach production levels, then the Kurdistan Region will surpass Iraq in terms of gas production. Now, the main question is whether or not reaching production of over 1 billion cubic feet of gas in this short period can place the Kurdistan Region into new energy balances in this region and save Iraq from importing Iranian gas and Turkish electricity. The Kurdistan Region's chances of meeting the target The gas fields of the Kurdistan Region, excluding the fields in Kurdish areas outside the Kurdistan Region's administration, or Article 140 areas, number five, with a total gas reserve of 26 trillion cubic feet. One of the fields is currently producing gas - the Khor Mor field. Additionally, there are five associated oil-gas fields in the Kurdistan Region with gas reserves reaching over 7 trillion cubic feet, and currently, three of these fields produce gas daily. Thus, the total natural gas reserves of the Kurdistan Region, whether in natural gas fields or those associated with oil, reach over 33 trillion cubic feet, where the level of investment is progressing daily. Five oil and gas fields in the Region are set to approach the level of gas production of the entirety of Iraq by the end of this year. The KM250 project development work has progressed toward completion and is in the final testing phase, according to Dana Gas. In the coming months, Dana Gas and its partners are set to bring gas production levels at Khor Mor and Chemchemal to approximately 865 million cubic feet of gas per day. Additionally, KAR Group produces between 120-130 million cubic feet of gas daily from the Khurmala field. WesternZagros and Gazprom produce approximately 10 to 15 million cubic feet of gas daily from the Sarqala field, and DNO's daily gas production level reaches 20 million cubic feet, but it is reinjected for use in oil production. In this way, the total gas production in the Kurdistan Region reaches approximately 1.025 billion cubic feet per day, while according to OPEC and Energy Institute (EI) data, Iraq produces approximately 1.15 billion cubic feet of gas daily. The Kurdistan Region's approach to Iraq's level in terms of natural gas production is due to the development of gas fields and the reduction of associated gas flaring from oil fields, at a time when, in July of this year, the World Bank published its annual report on associated gas flaring from oil and gas fields worldwide. According to the report, for the third consecutive year, the West Qurna-2 oil field in Basra ranks first globally among more than 15,000 fields with flaring of 1.64 billion cubic meters, and in 2024, Iraq ranked third globally for associated gas flaring, reaching 18.18 billion cubic meters. Another difference between Erbil and Baghdad regarding gas is in terms of timing. According to EI data, Iraq has been producing gas since 1970, with production of 0.07 billion cubic feet. In 2007, the production level was 0.44 billion cubic feet, and last year, the daily production level reached 1.15 billion cubic feet. In contrast, the Kurdistan Region produced zero gas before 2007, and in 2008 it reached 78 million cubic feet daily. Last year, the Region's production was approximately 0.7 billion cubic feet daily, and by the end of this year, it is set to reach over 1 billion cubic feet per day. In May, two new contracts were signed with HKN and WesternZagros in Washington for investment in the Miran and Topkhana fields. If the work of these two contracts also progresses, then in the coming years, the Kurdistan Region will surpass Iraq in terms of gas production and can emerge among gas-producing and exporting countries as a new supplier of this type of energy, which the world needs for the post-oil phase and the era of energy transition. Khor Mor compared with other Iraqi gas fields According to a report by the US Energy Information Administration (EIA) last month, Iraq's total gas reserves are approximately 131 trillion cubic feet, and the production level compared to reserves can be said to be zero or a rate of 0.00087 percent. Meanwhile, the Kurdistan Region's total reserves are 33 trillion cubic feet, but the production level by the end of this year will reach 1.025 billion cubic feet, meaning that while the Region's reserves constitute one-quarter or 25.19 percent of Iraq's gas reserves, its production level has reached close to Iraq's, despite the fact that only in 2024, 48 percent of Iraq's investment budget went to the oil ministry, amounting to more than $12 trillion. This advancement in the Kurdistan Region's natural gas investment traces back to the story of Khor Mor and Crescent Petroleum company and its partners, who started in 2008 and have continuously invested in it. The development of the Kurdistan Region's gas fields, unlike Iraq, does not have a long history and go back five decades. In fact, it does not even go back two decades. It began in 2008 with daily production of 78 million cubic feet to 810 million cubic feet of natural gas, 127 million cubic feet of condensate gas, and 105 million cubic feet of liquefied petroleum gas (LPG) by the end of this year, as shown below. Conclusion The test that Dana Gas and its partners reportedly plan to conduct is known as "Pressure Testing Pipe with Nitrogen" and is the final phase, after which preparations are made for production. Therefore, Dana Gas indicated in its first quarter 2025 financial report that it will commence gas production from KM250 and increase the gas production rate from Khor Mor by 50 percent for all three types of gas production. In Qamar Energy's 2021 report for the U.S. Department of Energy regarding the Kurdistan Region's natural gas, it was indicated that after meeting domestic needs, the first option for the Kurdistan Region's natural gas export is to Iraq, then Turkey, and other countries. Also, since 2019, the KM250 gas sales agreement between Dana Gas and the Kurdistan Regional Government (KRG) has been signed, and last year, Dana Gas and its partners negotiated gas sales to Iraq, but after the KRG's concerns and drone attacks, this issue was postponed. Now, the question is how the addition of 250 million cubic feet of gas will revive this issue. Will Dana Gas and its partners work directly with Baghdad as before, or will the KRG, Baghdad, and companies conduct trilateral negotiations together? According to EI data for 2024, the difference between production and demand for natural gas in Iraq is 750 million cubic feet per day, despite all signed contracts and projects of the oil ministry during this cabinet's term. Iraq can benefit from this advancement and development of the Kurdistan Region's natural gas in two ways: either buy the gas and transfer it to electricity generation stations as it attempted in the past for purchasing for electricity generation stations like Kirkuk, or buy electricity from production companies in the Kurdistan Region, because increased natural gas in the future will enable the Kurdistan Region to produce more electricity due to infrastructure that can produce up to 8,000 megawatts and double or triple the level of sales to Iraq. Another reality about the natural gas investment sector is that it is very complex and long-term, and requires significant capital. The Kurdistan Region potentially reaching close to the amount produced in Iraq over five decades in less than two decades, and becoming one of the pioneering natural gas production projects in this region and the Middle East means that federal Iraq will certainly shift from being an observer of gas-exporting countries to being a natural gas supplier in the coming years. However, it should not be overlooked that this expansion was delayed for three years due to security conditions, so this transformation requires ensuring security and safety now and in the future. Finally, the continued development of this sector in the Kurdistan Region can establish its position as a new energy source in the era of energy transition and become a factor in distancing or reducing Baghdad's dependence on Tehran's gas and Ankara's electricity. Mahmood Baban is a research fellow at the Rudaw Research Center. The views expressed in this article are those of the authors and do not necessarily reflect the position of Rudaw.
Rudaw Net
10-08-2025
- Business
- Rudaw Net
Dana Gas posts $73 million profit in first half of 2025
Also in ECONOMY Oil production resumes at two Kurdistan Region fields Baghdad says ready to receive any amount of oil from KRG KRG registers over 800k employees for digital financial initiative Erbil hands over oil to Baghdad, receives budget share A+ A- ERBIL, Kurdistan Region - The UAE-based Dana Gas on Sunday reported a net profit of $73 million for the first half of 2025, a decrease from the same period last year due to lower hydrocarbon prices despite high output in the Kurdistan Region's crucial Khor Mor gas field. In a statement, Dana Gas said it delivered 'resilient performance in H1 2025 with AED 270 million ($73mm) net profit, due to strong operation in KRI and new investment momentum in Egypt underpinning results despite lower prices.' Despite higher output in the Kurdistan Region, profits declined from last year due to lower hydrocarbon prices and a slight drop in Egypt production. A major expansion project at Khor Mor in Sulaimani province, known as KM250, is expected to drastically increase the production of gas from the field by an additional 250 million standard cubic feet of gas per day (mmscf/d), significantly boosting the Region's electricity generation capabilities. In May, Dana Gas announced that it had also begun development activities at the nearby Chamchamal gas field. The two fields are among Iraq's largest, and Chamchamal is set to produce 75 mmscf/d by mid-2026. 'Dana Gas made further progress on the KM250 expansion and Chamchamal development projects,' the statement said, reporting that production in the Kurdistan Region saw a three percent increase. 'Daily gas output at the Khor Mor field remained high, exceeding 500 MMSCFD, a 75% increase since 2017,' it stated. In April, Dana Gas said that KM250 is set to be completed early next year, ahead of schedule. 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 are now seeing the results of a proactive, hands-on approach across the business, one that keeps us close to the operations and focused on delivery. In the KRI, our operational teams have maintained excellent performance,' said CEO Richard Hall, adding that the KM250 expansion 'continues to move forward at pace.' 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
03-04-2025
- Business
- Rudaw Net
Dana Gas says mega Khor Mor expansion to finish ahead of schedule
Also in ECONOMY Oil producers accuse Baghdad of trying to 'unilaterally' alter contracts Iraq aims for 6 million bpd oil output by 2029: Oil ministry US urges Iraq to resume Kurdish oil exports, honor contracts with American companies Kurdistan oil exports could resume next week: Lawmaker A+ A- ERBIL, Kurdistan Region - The UAE-based Dana Gas announced on Thursday that a mega expansion project at the key Khor Mor gas field in Sulaimani province is set to be completed early next year, ahead of schedule. A major expansion project at Khor Mor, known as KM250, is expected to drastically increase the production of gas from the field by an additional 250 million standard cubic feet of gas per day (mmscf/d), significantly boosting the Kurdistan Region's electricity generation capabilities. 'Development of the KM-250 project, which promises to boost capacity by a further 50%, has accelerated the expected completion to Q1 2026. Progress on the US$1 billion expansion project … has advanced in recent months through fast-track simultaneous project construction and commissioning activities,' Dana Gas said in a disclosure on the Abu Dhabi Securities Exchange (ADX). 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. In the disclosure, Dana Gas revealed that production from Khor Mor reached 525 mmscf/d per day in early March, 'a growth of 75% since 2017, in addition to 15,200 b/d of condensate and 1,070 t/d of LPG.' 'The Khor Mor plant operated by the companies provides the fuel for around 75% of the KRI's electricity generation, enabling affordable power for more than 6 million Iraqis in the KRI and other governorates of Iraq. With total investment to date exceeding US$3.5 billion, the operations have created more than 20,000 direct and indirect jobs in the region,' it stated. 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 are at the start of an exciting new chapter for Pearl Petroleum with the imminent completion of the KM-250 expansion project,' said Crescent Petroleum CEO Majid Jafar. 'This work will further enhance the energy sector and economy of the Kurdistan Region and all of Iraq.' Dana Gas CEO Richard Hall said that the KM250 expansion 'will transform our business, enabling the next major phase of expansion.' 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.
Zawya
25-02-2025
- Business
- Zawya
Dana Gas' Board recommends a dividend of AED 385mln (5.5 fils per share) for 2024
Executing a pipeline of growth projects to drive revenue growth and support sustainable dividends Sharjah, UAE: The Board of Directors of Dana Gas PJSC (the 'Company'), the Middle East's largest regional private sector natural gas company, today announced it has recommended a dividend payment 5.5 fils per share for the full year 2024. The dividend payment of 385 million ($105mm) reflects the Company's strong financial position and aligns with the Company's objective of maintaining a sustainable dividend policy. The recommendation comes as Dana Gas successfully strengthened its balance sheet, following higher collections, improved cash flow, and proactive financial management in 2024. The Company's total collections rose to AED 1.2 billion ($326mm), a 37% increase from 2023, supported by the direct payment mechanism in the Kurdistan Region of Iraq (KRI) and improved receivables management in Egypt. Hamid Jafar, Chairman of the Board of Directors, said: ' The Board's dividend recommendation reflects Dana Gas's strong financial performance and confidence in its long-term outlook. Strengthening our balance sheet and enhancing cash flow have been key priorities in 2024, and the significant progress in this area enables us to resume sustainable dividend payments while continuing to invest in future growth projects that will support growing dividends in the future. With the KM250 expansion project on track and the successful signing of the Egypt Consolidation Agreement, Dana Gas is well-positioned to capitalise on future opportunities and create long-term value for shareholders while maintaining financial discipline' Dana Gas delivered solid financial and operational performance in 2024, reporting a 5% increase in revenue to AED 1.63 billion ($445mm) and a net profit of AED 553 million ($151mm). The Company also continued advancing the KM250 expansion project, which remains on track for first gas in Q2 2026, and formally signed its new Consolidated Concession Agreement in Egypt, supporting long-term growth and investment in the country. The Company's strengthened financial position was supported by AED 488 million ($133mm) in dividends received from Pearl Petroleum and a reduction in corporate debt by over $78 million in 2024, bringing it down to $28 million. The Board's recommendation will be subject to shareholder approval at the upcoming Annual General Meeting (AGM) on 16 April 2025. About Dana Gas Dana Gas is the Middle East's first and largest regional private sector natural gas Company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with 2P reserves exceeding one billion boe and average production of approximately 55 Kboepd in 2024. With sizeable assets in KRI and Egypt, and further plans for expansion, Dana Gas is playing an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia (MENASA) region. Visit:
Trade Arabia
08-02-2025
- Business
- Trade Arabia
Dana Gas revenue soars to $445m in 2024; net profit up 15pc
Dana Gas, a leading regional private sector natural gas company, has reported a revenue growth of 5% in FY 2024, reaching AED 1.63 billion ($445 million), up from AED1.55 billion ($423 million) the year before, driven primarily by the recognition of additional revenue from improved fiscal terms under the recently signed Consolidated Concession Agreement in Egypt. Announcing its un-audited preliminary financial results for the 12-month period ended December 31, 2024, Dana Gas said its net profit stood at AED553 million ($151 million), compared to AED 586 million ($160 million) in 2023, after a one-off impairment charge of AED121 million ($33 million) in Egypt related to past costs of old concessions. Excluding this one-off impairment, net profit for the year was AED674 million ($184 million), a 15% increase from AED586 million ($160 million) in 2023, it stated. In Q4 2024, Dana Gas said its revenue surged by 64% to hit AED583 million ($159 million), up from AED356 million ($97 million) in the same period last year, primarily due to the recognition of additional revenue under the newly signed Consolidated Concession Agreement in Egypt. The Q4 net profit increased by 15% to AED143 million ($39 million), compared to AED125 million ($34 million) in Q4 2023, as a result of the additional revenue and lower financing costs. In September last year, Pearl Petroleum took over full responsibility for the KM250 expansion project following the termination of the original EPC contractor. Construction resumed fully in December and the project is now scheduled to achieve first gas by Q2 2026. Once operational, KM250 will add processing capacity for an additional 250 MMscf/d of gas, significantly boosting Company's cashflows and financial performance, said the statement from Dana Gas. Khor Mor facilities currently supply more than 500 mmscf/d of gas to four power stations and enables the generation of approximately 2,800 MW of electricity which constitutes more than 75% of the KRI's power generation. This supply of steady and affordable gas, results in significant fuel cost savings and affordable electricity for millions of Iraqis in the KRI and neighboring governorates, benefiting the whole of Iraq, said the statament. Once completed, additional gas supplied by the KM 250 project to the region's power stations will play a vital role towards further supporting the economic development across the KRI and Iraq, it added. At the end of 2024, Dana Gas formally signed the new Consolidation Agreement with the Ministry of Petroleum & Mineral Resources and the Egyptian Natural Gas Holding Company (EGAS). The agreement replaces the company's existing concessions with a single concession encompassing an additional 297 sq. km of exploration acreage and improved fiscal terms, enabling greater operational efficiency and unlocking further investment opportunities. Under the Agreement, Dana Gas has committed to a $100 million development and exploration programme, including the drilling of 11 wells. On the solid results, CEO Richard Hall said: "I am pleased with the progress we made in 2024. After some delays with KM250, Pearl took over direct management of the project from the incumbent EPC contractor and I am confident, with increased Dana Gas involvement, that it is now back on track to deliver first gas by Q2 2026." "Once completed, the project will strengthen our operations and significantly enhance our cash flow. Additionally, thanks to the previously established payment mechanism in the KRI, we received regular payments throughout the year, reducing our outstanding receivables and strengthening our balance sheet," stated Hall. "In Egypt, the successful signing of our new Concession Agreement has led to commencement of the planned investment program, and we're excited about the potential upside possibilities under the new Agreement," he added. Looking ahead, Hall said the group was optimistic about the future and actively evaluating the resumption of sustainable dividend payments to its shareholders.
