Abu Dhabi – Mubasher: Dana Gas on Sunday revealed it has received $43.75 million (AED 161 million) in total dividends from Pearl Petroleum Company Limited for condensate and LPG sales in the Kurdistan Region of Iraq (KRI) in the first half of 2018.

The dividends included a $7 million (AED 52.8 million) payment for June, Dana Gas added in a filing to the Abu Dhabi Securities Exchange (ADX).

The Sharjah-based gas company said that this is separate from cash-flow kept within Pearl Petroleum to sustain current operations, as well as from the company’s $140 million dedicated for further investments, in accordance with the settlement agreement signed in August 2017 with the Kurdistan Regional Government (KRG).

Dana Gas’ net share of production in the KRI grew slightly to 26,100 barrels of oil equivalent per day (boepd) during H1-18, compared to an output of 25,900 boepd during H1-17.

Moreover, Pearl Petroleum’s production is set to rise by 170% by 2021 through the installation of two 250 million standard cubic feet per day (MMscf/d) gas processing trains along with the two trains already in commission.

Accordingly, the capacity to process gas and condensate from the Khor Mor field will increase by 580 MMscf/d and 20 mbbld, respectively, Dana gas noted.

The expansion programme is on track to deliver an increase in output of 80 MMscf/d by Q3 2018.

Furthermore, the company has secured a $25.9 million third-party financing for the project and signed a 10-year gas sales agreement with the KRG to supply and sell additional quantities of gas from the project, according to the filing.

The company noted that “the expansion plan will be financed at the Pearl Petroleum level from third-party financing or internal cash flow generated without any finance provided by Dana Gas”.

It is noteworthy to mention that Pearl Petroleum is a five-company consortium focused on exploration and production of natural gas and liquids assets in the KRI, in which Dana Gas holds a 35% stake.