According to the report, Dana Gas saw a decline in profitability during the first six months of the year, generating a net profit of $83 million compared to $111 million last year the same period last year, citing declining Brent prices and discounts on condensate sales in the Kurdistan Region as reasoning for the drop in profits.
The decline in profitability was also due to additional discounts on condensate sales in the KRI [Kurdistan region of Iraq], where the Company began to sell to third party local buyers as other companies shut down production in the Kurdistan region of Iraq,” read the report.
The company increased its production rate in the Kurdistan Region by 1,900 oil barrels per day in the first half of 2023 compared to the first half of 2022, while at the same time reducing operation costs by 15 percent.
The report added that Pearl Petroleum, a 5-company consortium consisting of Dana Gas and Crescent Petroleum in the Middle East and three European energy firms, recently received $101 million from the Kurdistan Regional Government (KRG) to settle outstanding receivables, adding that the amount the Region owes now stands at $97 million.
The consortium continues its work in the Region and has now completed the drilling of six wells in the KM250 expansion project set in Khor Mor gas field, located in Sulaimani’s Chamchamal district.
Khor Mor field has repeatedly come under rocket attacks, reportedly by Iran-affiliated Iraqi militia groups with a spate of attacks occurring last year.
Despite the security threats on the gas field, Dana Gas last year said they would be able to meet the Kurdistan Region’s full gas demands in about two years.
The KM250 expansion project is supported by a $250 million financing agreement for 7 years announced in September 2021 with the US International Development Finance Corporation.
