Dubai: Dana Gas said it would increase its annual dividend by 27 per cent amid a surge in crude prices that is benefiting oil and gas producers. Brent crude prices – the international benchmark for oil – have more than doubled to about $83 in the last 12 months as the lifting of COVID-19 restrictions restores global fuel demand.
“The Board of Directors’ is encouraged by the recent positive trend of international energy prices and the Company’s strong operational and financial performance,” said Hamid Jafar, Chairman.
The company announced earlier that its collections from the KRI (Kurdistan Region of Iraq) and Egypt increased 86 per cent year-on-year in the first ten months of the year to $283 million (Dh1.03 billion) from $152 million (Dh557mm) in the same period the previous year, supported by higher oil prices and the settlement of past outstanding receivables in the KRI.
Dana’s KM250 expansion project is on track to deliver first gas in the second quarter of 2023. This project is the first stage of a two-train expansion project at Pearl Petroleum’s Khor Mor plant that aims to boost total production capacity to approach 1 billion standard cubic feet a day (scf/day). Pearl Petroleum recently signed a $250 million financing agreement with the US International Development Finance Corporation to support the Khor Mor gas expansion project.