Dana Gas PJSC’s collections from the Kurdistan region in Iraq (KRI) and Egypt rose 107 percent in 2021 to AED1.38 billion ($377 million) from AED667m ($182m) in 2020 – a year that was marked by global downturns due to Covid.
According to a statement, the Middle East’s largest private sector natural gas company saw its share of collections from sales of condensate, LPG and gas in the KRI rise 80 percent to AED674m ($184m) in 2021 versus AED374m ($102m) in 2020. This increase follows the full repayment of past outstanding receivables from 2019 and 2020.
In Egypt, Dana Gas collected AED707m ($193m) during 2021, compared to AED293m ($80m) in 2020, a 141 percent jump.
The payments from the government of Egypt have reduced the company’s receivables from the North African state to under AED73m ($20m), the lowest level since Dana Gas commenced operations in the country in 2007.
“This record level of collections has also provided us with the confidence to pursue our investment plans in both the KRI and Egypt, supported by higher hydrocarbon prices and an improving macro-economic environment. Higher energy prices have a positive impact on the realised prices of the products sold by the company and hence its profitability,” CEO of Dana Gas, Dr Patrick Allman-Ward, said.
Dana Gas, which owns a 35 percent stake in Pearl Petroleum, resumed construction on its KM250 expansion project at Pearl Petroleum’s Khor Mor field in the KRI last April. The KM250 expansion involves further investment of $600m to add 250 million cubic feet per day of additional gas production to supply the local power stations. It is the first stage of a two-train expansion project at the field to boost production capacity to approach 1 billion scf/day.
Pearl Petroleum has signed a $250m financing agreement with the US International Development Finance Corporation to support the Khor Mor gas expansion project, which is on track for completion in April 2023.
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