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Rudaw Net
21-07-2025
- Business
- Rudaw Net
Kurdistan Region's oil production before, after drone strikes
Also in Opinions Sarsang oil field attack and the Hamrin oil, gas contracts: five key questions Decoding Ocalan's message: The question of PKK disarmament and the future of Kurdish politics Kurdish intellectuals face challenges amid Turkey's Kurdish question The 12-day war and silent transformations of western Asia A+ A- Oil fields in Erbil and Duhok provinces were targeted by explosive-laden drones over two days last week. The attacks on various areas of these two provinces continue, and the number is increasing day by day, despite condemnations from the United States, Iraq, and demands from the Kurdistan Region to stop the attacks. Currently, two-thirds of oil production in the Kurdistan Region has been halted, and companies and the Kurdistan Regional Government's (KRG) natural resources ministry indicate massive damage to oil production infrastructure in the Region. This has had a direct impact on the market, with each ton of oil products becoming approximately $30-40 more expensive. If the current situation continues, prices will rise even higher. Furthermore, total oil production in the Kurdistan Region has declined to 101,680 barrels per day, which is the lowest level of oil production in the Kurdistan Region oil fields since the second quarter of 2015. Before the drone strikes, oil production from 12 oil and gas fields in the Kurdistan Region was 328,000 barrels, including 15,819 barrels of Khor Mor condensate gas. Currently, oil production - excluding gas - has reached 101,680 barrels. These attacks have a very significant impact on the oil and gas sector in the Kurdistan Region, as they come at a time when, since March 2023, all development and new investments by international oil companies (IOCs) in the Kurdistan Region have stopped. Now these attacks have targeted the existing infrastructure of companies and caused reduced production and zero operations by IOCs in Erbil and Duhok. If the Khurmala oil field facilities are again targeted by drones, production levels will certainly reach near zero throughout the Kurdistan Region. The motives behind these attacks are complex and varied. Primarily, they have targeted the oil industry infrastructure of the Kurdistan Region, demonstrating the high technical capability of the attackers and their ability to strike anywhere and anytime, regardless of the consequences. Another point is that oil and gas fields in the Kurdistan Region still lack adequate protection systems, which is why the impact of these attacks has caused major economic consequences and significant damage to the industry. Even the Shekhan oil field, operated by the British company Gulf Keystone, decided to halt oil production due to security risks, though it has not yet been targeted. The 70 percent reduction in oil production not only harms oil companies and the Kurdistan Region's revenues from this sector, but also will directly impact oil refineries and prices of oil products, especially gasoline, in the coming days if a solution is not found quickly. Currently, except for Khurmala and Sarqala oil fields, oil production has been halted in all other oil fields in the Kurdistan Region, and it is unclear when companies will resume oil production. 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.
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) (
Zawya
08-05-2025
- Business
- Zawya
Dana Gas reports 13% 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.' OPERATIONS & PRODUCTION 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. LIQUIDITY 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. The Company's receivables in the KRI stood at AED 246 million ($67 million) as of the end of Q1 2025, down from AED 334 million ($91 million) a year earlier. Receivables in Egypt stood at AED 290 million ($79 million), up from AED 209 million ($57 million) in Q1 2024. -TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Zawya
08-05-2025
- Business
- Zawya
Dana Gas reports a 13% increase in net profit for Q1 2025
Highlights – Q1 2025 Net profit up at AED 158 million ($43mm) in Q1 2025 from AED 139 million ($39mm) in Q1 2024 KM250 project completion date accelerated to Q1 2026 Sharjah, UAE: Dana Gas PJSC (the 'Company'), the Middle East's largest regional private sector natural gas company, today announced its financial results for the three-month period ended 31 March 2025. The Company reported a net profit of AED 158 million ($43mm) for Q1 2025, a 13% increase compared to AED 140 million ($38mm) 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 ($91mm), compared to AED 356 million ($97mm) 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, committing 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, commented: '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.' Operations & Production 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. Liquidity As of 31 March 2025, Dana Gas's consolidated cash balance stood at AED 1.4 billion ($373mm), including AED 784 million ($214mm) held at the Pearl Petroleum level. The Company's total debt remained stable at AED 1,045 million ($285mm). In April 2025, shareholders approved a cash dividend of AED 385 million ($105mm) for FY 2024, reflecting confidence in Dana Gas's financial strength and cash flow visibility. Total collections for the quarter reached AED 257 million ($70mm), compared to AED 279 million ($76mm) in Q1 2024 reflecting a 100% collection rate in the KRI and 92% in Egypt. The Company's receivables in the KRI stood at AED 246 million ($67mm) as of the end of Q1 2025, down from AED 334 million ($91mm) a year earlier. Receivables in Egypt stood at AED 290 million ($79mm), up from AED 209 million ($57mm) in Q1 2024. 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:
