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ERBIL, Kurdistan Region — Dana Gas has announced a huge increase in its revenue collections from the Kurdistan Region’s Pearl Petroleum.
On Monday, the United Arabs Emirate (UAE)-based natural gas company announced its revenue in Pearl Petroleum, a consortium of gas companies operating in the Kurdistan Region, increased to $80 million in the first half of 2019 from $46 million in the first half of 2018. This constitutes an increase of 74%, according to a press release from Dana Gas.
The company head said Dana Gas' work will benefit the Kurdistan Region.
“Our flourishing partnership will bring about tangible benefits for the region, including the creation of more jobs and greater confidence in its hydrocarbon sector, which will ensure a flow of revenue into much-needed infrastructure,” said Dana Gas CEO Patrick Allman-Ward.
Dana Gas has been in the Kurdistan Region since the Kurdistan Regional Government (KRG) started its independent oil and gas industry from Baghdad in 2007.
It is mainly involved in Chamchamal and Khor Mor, two fields in the Sulaimani Province which have contributed to the Kurdistan Region’s electricity sector.
The company was involved in a legal battle against the KRG in recent years, accusing the KRG of not paying its due to the company as the Region was faring through difficult financial conditions and a war with the Islamic State (ISIS).
However, starting from 2018, relations have gotten better, and the two reached a settlement in 2017. Pearl Petroleum announced in March that it had struck a deal with the KRG to boost gas extraction at the Khor Mor field in Chamchamal by 63 percent by 2022.
The news of the revenue increase added to Dana Gas’ Sunday announcement of an increase of its share in Khor Mor and Chamchemal gas reserves. Dana oil now has 1,087 million barrels of oil there, meaning the reserves could be the largest in Iraq, according to the press release.
“We believe that this is just the tip of the iceberg,” said Allman-Ward.
Reuters reported on Sunday that Dana Gas has hired investment bank Tudo, Pickering, and Holt & Co. (TPH) for advice to sell its assets in Egypt in a bid for the company to focus further on the Kurdistan Region.
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