UAE-based Dana Gas will boost its investment to over $500 million in projects in Northern Iraq, Egypt and the UAE this year, the company announced on Sunday.
The investment follows news last week that the company’s first-quarter net profit rose to $6.81 million, up 19% from the year-ago period, spurred by record oil prices.
Ahmed Al-Arbeed, executive director of Dana Gas Upstream, said the firm would focus on implementing projects in the UAE and the Kurdistan region of Iraq, while expanding its drilling programme of new wells in Egypt.
“Dana Gas has already established strong positions in all areas of the natural gas business in the UAE, Egypt and Iraq, and we will continue to build upon these as well as expand into new countries in the GCC region and North Africa, especially in view of the record oil prices currently witnessed,” Al-Arbeed said in a statement.
With energy prices and demand increasing across the Middle East, a recent report by Apicorp has estimated over $210 billion of investment is required in the region’s natural gas industry in the next five years.
Dana Gas is currently implementing a $650 million integrated gas project in Iraq’s Kurdistan region in a joint venture with Crescent Petroleum. The project, which involves gas development, production, processing and pipeline construction, is the largest private sector energy project in Iraq, and is over 80% complete.
In the UAE, Dana Gas has signed a 25-year concession agreement for exploration and development of gas in an area of over 1,000 square kilometres offshore from Sharjah, including the development of the discovered Zora Gas Field.
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