Abu Dhabi: Sharjah-based Dana Gas received $43.75 million (Dh161 million) in dividends from Kurdistan operations in the first half of 2018.
The dividend was paid by Pearl Petroleum Company Limited for the sale of condensate and liquefied petroleum gas (LPG) in the Kurdistan Region of Iraq (KRI) and included a $7 million (Dh25.7 million) payment for the month of June 2018, the company said on Sunday.
Pearl Petroleum is a consortium comprised of five oil and gas companies that are focused on the exploration and production of natural gas and liquids assets in Kurdistan, in which Dana Gas is a 35 per cent shareholder and joint operator.
Dana Gas’ net share of production in the KRI averaged 26,100 barrels of oil equivalent per day (boepd) during the first half of 2018, a slight increase over the same period last year.
The company said plans are underway to increase Pearl Petroleum’s production by 170 per cent by 2021.
“The first phase of this expansion programme is the fast-track debottlenecking project of the current production facilities. The project remains on track to deliver an increase in output of 80 MMscf/d [million standard cubic feet per day], the equivalent of approximately a 25 per cent uplift, by [the] third quarter [of] 2018.”
In addition, third-party financing of $25.9 million for the project has been secured and a 10-year gas sales agreement with the Kurdistan Regional Government to supply and sell additional quantities of gas from the project has been signed, according to the company.