Page 14 - MEOG Week 19 2021

MEOG NEWS IN BRIEF MEOG

POLICY COMPANIES economic conditions.”
Group production in Q1 2021 averaged
Iranian MFA confirms talks Dana Gas profits up 64,900 boepd, a 2% increase as compared to
63,650 boepd in Q1 2020. The first quarter
with Saudi Arabia Dana Gas announced its financial results for production increase was driven by the KRI,
the first quarter ended 31 March 2021.
which grew by 9% to 35,300 boepd from
Iran and Saudi Arabia have held talks to Net Profit was up 41% in Q1 2021 reaching 32,400 boepd, building on the significant
reduce tensions between the two countries, $24 million (AED 88mm) as compared production increase in Q4 2020 after the Khor
Iranian Foreign Ministry spokesperson to $17 million (AED62 mm) in Q1 2020. Mor plant by-pass project was completed in
Saeed Khatibzadeh said in a televised press The increase in Net Profit was the result of July 2020. Production in Egypt declined by 5%
conference on May 10. improved revenues from higher production to 29,050 boepd, which was more than offset
The two neighbours across the Persian Gulf in the Kurdistan Region of Iraq (KRI), and by the increase in production in KRI.
broke off diplomatic relations in 2016 when a reduction in finance cost due to lower In the KRI, Pearl Petroleum, the company
Riyadh severed diplomatic relations with Iran borrowings in Q1 2021 as compared to consortium operated by Dana Gas and
after the storming of their diplomatic missions Q1 2020. Revenue was $106 million (AED Crescent Petroleum, fully resumed the
in Tehran and Mashhad. The storming 389mm), 2% higher compared to $104 expansion project at the Khor Mor field.
embassy came after Shiite Iran’s religious million (AED 382mm) in Q1 2020. The The first gas train will add 250 million cubic
authorities condemned the ruling Al-Saud improved performance was mainly due to a feet per day of much-needed additional gas
family for executing influential cleric Sheikh 9% production increase in the KRI. Realised production to supply the local power stations.
Nimr al-Nimr. price averaged $44/bbl for condensate and The project construction work had been put
“The conversation focused on both $33/boe for LPG compared to $41/bbl and on hold due to the COVID pandemic but is
bilateral and regional issues. We have always $30/boe respectively in Q1 2020. now on track for a new target start date of
welcomed such consultations in any form and Dr Patrick Allman-Ward, CEO of Dana April 2023, after agreement to lift the force
at any level,” he was quoted as saying. Gas, commented: “Dana Gas has delivered majeure. The KM250 expansion project
“It is definitely in the interests of both a strong quarter with robust operational involves a further investment by Pearl of $600
countries and the region to reduce tensions,” performance, continuing the positive million to boost output by almost 60%.
he said, expressing the hope that Tehran momentum from the previous period. In the Last month, Dana Gas announced its
and Riyadh would change the atmosphere KRI we are moving ahead with our expansion decision to retain and operate its onshore
in relations and achieve substantial mutual plans to significantly boost production from assets in Egypt alongside the highly
understanding. 440 MMscf/d to 690 MMscf/d by April 2023. prospective Block 6. The Company is
At the same time, Khatibzadeh urged to This will contribute positively to our top and currently evaluating its Block 6 Concession
wait for the results of the negotiations. bottom line. We remain fully committed Area for drilling an exploration well as soon
Earlier, the Crown Prince of Saudi Arabia, to managing our producing assets in Egypt as possible.
Mohammed bin Salman, said in an interview for the benefit of all our stakeholders and DANA GAS
with Saudi television that Riyadh expects focusing on evaluating the exciting potential
good relations with Iran. of our offshore Block 6 Concession Area as
Later, the Iranian Foreign Ministry quickly as possible. OIL
supported such statements of the prince amid “We maintained our strong financial
ongoing talks over Iran’ nuclear programme position, with increased production from Jordan announces tender to
which is expected to see sanctions removed by the KRI and lower financing costs following
the US on Iran in the coming weeks. the repayment of the Company’s outstanding transport oil from Iraq
BNE Sukuk in Q4 2020. I am pleased that we
maintained the dividend to Shareholders, for The Jordanian Ministry of Energy and
the fourth consecutive year, despite adverse Mineral Resources has launched a tender to

P14 www. NEWSBASE .com Week 19 12•May•2021