Wednesday 22 May 2024

Hamid Jafar

Dana Gas focuses on developing KRI and Egypt assets

SHARJAH, April 18, 2024

Dana Gas, the Middle East's largest regional private sector natural gas company, remains focused on developing its assets in the Kurdistan Region of Iraq (KRI) and Egypt, while committing to resilient and sustainable business practices.
The company’s ‘future prospects are positive’, and it is expected to continue its strong financial performance supported by strong operational performance and higher commodity prices. Pearl Petroleum continues to make steady progress on the KM250 expansion project in the Kurdistan Region and envisages completion of the project in the second half of this year. 
Once completed, the KM250 is expected to generate at least $150 million of additional revenue will boost the company’s financial performance and liquidity, it was revealed at Dana’s Annual General Meeting, in which shareholders elected a new 11-member Board of Directors for the next three-year term. The new Board includes three new directors, namely Mohammed Alhashimi, Omar al Mulla and Mohamed Al-Khoori.
Tie-up with EGAS
The Egyptian Cabinet, in early March, approved draft law authorising EGAS to contract with Dana Gas. This significant development marks the next step in the process, as the draft law will be forwarded to the State Council for legal review before proceeding to Parliament for ratification. This agreement is set to extend the operational lifespan of the company’s Egyptian assets, support its production levels, and includes further investment of approximately $100 million.
Hamid Jafar, Chairman of the Dana Gas Board of Directors, said: “We have made significant strides in improving our financial position. The establishment of a new payment framework in the Kurdistan Region of Iraq has already resulted in timely payments, and we are optimistic about resuming dividends to our shareholders at the earliest opportunity.
“Despite the decline in oil prices last year and a more challenging global economic environment, Dana Gas has once again proven the resilience and effectiveness of its business model. Our management of capital expenditure, reduction in operating costs, and increased production efforts have collectively enabled us to create long-term value for our shareholders,” he said.
Jafar thanked the retiring board members for their service and valuable contributions. “And we are pleased to welcome the appointment of the new board of directors, whose expertise and capabilities will strategically guide the company for the coming term,” he said.--TradeArabia News Service


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