Dana Gas says gas sales deal contingent upon phase two in Kurdistan expansions

2019-03-11 11:58:41 GMT (Economies.com)
 

Dana Gas said that the gas sales agreement signed recently is contingent on phase two in expansions of operations in Iraqi Kurdistan, according to a bourse statement.

 

The company expects to generate up to $200 million (AED 733 million) in revenues following its latest gas sales agreement with the Kurdistan Regional Government, as it looks to add more capacity to its assets in the region.

 

“The financial impact of this expansion is directly related to the oil price," Dana Gas chief executive Patrick Allman-Ward said on Monday in a disclosure to the Abu Dhabi Securities Exchange, where its shares are traded. "With the oil price ranging between $60 and $70 per barrel, we expect the new phase of expansion to add $175m to $200m to Dana Gas share of revenues and project’s cash flows per annum.”

 

The financial impact of the transaction would come into effect after the construction of new capacity and addition of incremental production in 2021, Mr Allman-Ward said.

 

In 2017, the consortium agreed with the KRG to settle past receivables and vowed to continue investing in the region, particularly in the Khor Mor and Chemchemal fields, through the addition of gas processing and liquid extraction facilities.

 
 
 
  Symbol Last Change Chg.%
1.1606
0.0036
0.3139%
1.3751
0.0123
0.9053%
Tadawul
11773.36
25.09
0.21%
23.335
0.700
3.090%
82.022
0.902
1.112%
84.86
0.86
1.02%
1767.855
13.150
0.749%
 
 
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