Abu Dhabi – Mubasher: Dana Gas is studying the potential to separate its exploration and production business, known as "Upstream Business" into a new independent company, to be listed in Abu Dhabi Securities Exchange (ADX). 

If the demerger is implemented, the company's shareholders will own shares in two companies, one of which will focus on the upstream business and the other will carry on the midstream business, according to the company's press release on Tuesday. 

Dana Gas has oil and gas producing assets, including Dana Gas Egypt, and a 35% stake in Pearl Petroleum in the Kurdistan region of Iraq, while its midstream business will be the UAE Gas Project. 

The company's board believes that the demerger will allow the shareholders to have greater flexibility to direct investment in either or both companies, improve the methods of managing funds, properly distribute and allocate resources, as well as strengthen operational performance. ​

Commenting on the demerger, the Chairman of Dana Gas, Hamid Jafar, said: "Our Upstream Business has grown considerably over the last 13 years and will continue to deliver growth in the years to come. A pure-play upstream company may attract significant new investment both locally and internationally linked to future production growth. A pure-play midstream business would be more stable and have less exposure to commodity price changes."