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ERBIL (Kurdistan 24) – Dana Gas has hired an investment bank to advise the company on the transfer of its investment objective from Egypt to the Kurdistan Autonomous Region, sources told Reuters on Sunday.
The gas company has retained Tudor, Pickering, Holt & Co. to advise and facilitate the sale of its badets in Egypt, worth more than $ 500 million, sources close to the subject said.
Dana Gas, headquartered in Abu Dhabi, has its main badets in Egypt and the Kurdistan region. According to one of the anonymous sources cited in the report, the company believes that focusing on a single geographic territory would attract more investors into the company in the future.
Until now, the Dana has not made any public comments confirming or reversing the move.
It has, however, begun to market its Egyptian badets in recent weeks, but buyers have still not started buying them, a source added, adding that these badets represented "more than $ 500 million".
The source also said that the Kurdistan region, even though it had considerable growth potential, had significant capital expenditures. As a result, the company's attempt to sell its Egyptian badets is "strategic".
Dana announced on Sunday a new discovery of oil in its fields in the Kurdistan region, which could have the largest gas reserves in the country.
Pearl Petroleum, a majority-owned consortium of Dana Gas and its subsidiary Crescent Petroleum, has signed this year a 20-year gas sales agreement with the Kurdistan Regional Government (KRG), which will facilitate production. and the sale of 250 million cubic feet per day. gas.
"Pearl Petroleum's expansion plan will see production increase to 650 million cubic feet per day by 2022, and then to 900 million cubic feet per day by 2023 from 400 million cubic feet per day. current day, "the company said in a statement.
"With a price per barrel of between $ 60 and $ 70 per barrel, each of these two new gas production trains will generate between $ 175 and $ 200 million as a share of the project's revenue and cash flow per year."
Dana Gas CEO Patrick Allman-Ward said earlier in May that Pearl Petroleum would increase investment financing in the Kurdistan region through alternative sources of financing.
He also said that Dana's capital expenditures for the Kurdistan region would have been estimated at about $ 70 million – $ 90 million in 2019, compared to nearly $ 90 million in Egypt.
Allman-Ward said Sunday that the Gaffney Cline report had independently confirmed Dana Gas's 2P reserves in their Kurdistan region badets at more than one billion barrels of oil equivalent.
"Our belief that the fields of Khor Mor and Chemchemal will probably be the largest gas fields, not only in the Kurdistan region of Iraq, but throughout Iraq, make them world-clbad badets," he said. said the CEO of the company.
He also noted with satisfaction that their listeners had officially reserved their oil reserves for the first time in Khor Mor.
"We think it is only the tip of the iceberg, which confirms our estimate of a potential oil resource of over 7 billion barrels. These additional resource statements will underpin our future development plans, which will provide a reliable source of energy to meet the region's electricity generation and industrial development needs, "said Allman-Ward. .
Edited by John J. Catherine
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