Dana Gas


Crescent Petroleum, Dana Gas support AMAR IDP Clinics

Crescent Petroleum and Dana Gas deliver vital support to AMAR IDP clinics

As Iraq’s security conditions have improved, international donors have turned their attention to other troubled parts of the world, leaving many IDP camps in the country on the brink of closure.

Thanks to the continued support of Crescent Petroleum and Dana Gas, however, AMAR have continued to deliver much needed healthcare and support to Khanke Camp’s 16,000 residents

Nearly 2 million Iraqis remain displaced within Iraq, a vast proportion of them still in camps for internally displaced people (IDPs). From victims of conflict who have lost homes and livelihoods to families too afraid to return to their homes after the violence of recent years IDPs remain among the most vulnerable population in the country.

After the trauma of violence and displacement, families in the camps continue to rely on the safe, supportive and nurturing environment in the camp to start rebuilding their lives. But with charitable funding drying up, many camp facilities, especially health care centres, are facing imminent closure.

Dana Gas and Crescent Petroleum, which have contributed considerably to causes within Iraq, remain committed to AMAR’s services in Khanke, delivering vital health and wellbeing services to the thousands of residents at the camp.

Crescent, one of the Middle East’s oldest and largest upstream oil companies, and Dana, one of the largest private-sector natural gas companies in the region, are committed to helping AMAR deliver vaccinations, antenatal care and child health monitoring at the camp.

IDPs are among the most vulnerable people in Iraq, but sadly they are often overlooked by donors,” said Majid Jafar, CEO of Crescent Petroleum. “We are proud to be partnering with AMAR to provide critical healthcare services and training to the people in Khanke camp.

A key part of the health programme at the camp are the Woman Health Volunteers (WHVs), who are the front line to identifying health and wellbeing issues among the residents and are trained to deliver health care when needed. Between April and June of this year, the WHVs made thousands of home visits to families at the camp, providing basic healthcare services and delivering health advice, in addition to providing mental health outreach. In all, the WHVs offered support and services to more than 15,000 people during the spring period.

One AMAR WHV, Thikra, for example, recently paid a visit to the Jamila family in the camp. One of the family’s sons had been showing distressing changes in behaviour, including fatigue, excessive sleep and weight gain. Thikra identified the signs of depression in the boy and confided in Mrs. Jamila to openly discuss her son’s symptoms. She then advised the mother to seek a medical assessment for boy’s the condition and set the family on the path to recovery.

Thikra’s work is funded by Dana and Crescent, and is emblematic of the kind of support the companies are funding and promoting in the community.

The companies also provide funds for vocational training programmes in the camps, including sewing and design, IT, and English lessons, providing residents the opportunity to develop skills that can boost their chances of finding employment or to set up their micro-business of their own.

Crescent Petroleum and Dana Gas are among the largest private foreign investors in Kurdistan. Their focus is on developing the region’s natural resources in sustainable way to deliver lasting benefits to local communities. Their US$1.1bn development of the Khor Mor gasfield provides the natural gas to power electricity plants in Erbil and Chamchamal, delivering 1,700 MW of electricity to over 4m people living in the region.

LPG Plant in Kor Mor

Patrick Allman-Ward, CEO of Dana Gas’, said:

“We are committed to developing resources in Kurdistan to provide power to communities and build the structures for inclusive growth, as well as to tackle the economic and social factors that are a barrier to this development. We look forward to strengthening our partnership with AMAR in the future so that we can continue working towards these goals across the region.”

Other projects Dana and Crescent have funded in Kurdistan include renovating and supplying schools, funding hospitals and providing potable water to villages.

Baroness Nicholson, AMAR’s Founder and Chairperson said:

“It is vital that we continue to provide healthcare and education in the camps, as people living there continue to experience extreme deprivation. Thanks to the exceptional generosity of Dana and Crescent, we are able to do this in Khanke. We are very grateful to them for giving us the opportunity to bring relief and support to communities in real need.”

(Source: AMAR)

Dana Gas gets $44m from KRG in 1H

By John Lee.

Dana Gas has said it has received $43.8 million in dividends from Pearl Petroleum Company Limited for condensate and LPG sales in the Kurdistan Region of Iraq (KRI) in the first half of 2018, including a $7 million payment for the month of June.

The company added that the capacity to process gas and condensate from the Khor Mor field (pictured) will increase by 580 MMscf/d and 20 mbbld, respectively, with the expansion programme is on track to deliver an increase in output of 80 MMscf/d by Q3 2018.

(Sources: Rudaw, Mubasher)

KRG, Pearl agreement to boost Electricity Generation

The Kurdistan Regional Government (KRG) and Pearl Petroleum have signed an agreement to increase production of gas from the Khor Mor field later this year, to boost much needed electricity generation for the people of the Kurdistan Region and Iraq as a whole.

The 10-year gas sales agreement will enable gas production from Khor Mor field to increase by 25% later this year, from 320 million cubic feet per day currently to 400 million cubic feet per day.

Dr Ashti Hawrami, KRG Minister of Natural Resources, said:

“We are pleased to see the further commitment of expansion and investment by the companies and the anticipated growth in gas supplies will make a positive contribution to the growing domestic needs for more electricity.”

As part of a final settlement of arbitration in August 2017, Pearl Consortium, which is led by Crescent Petroleum and Dana Gas, committed to expanding their investment and operations in the region.

The companies plan a multi-well drilling program in the Khor Mor and Chemchemal fields, as well as installation of new gas processing and liquids extraction facilities. The overall aim is to increase gas production by a further 125% within two years, to 900 million cubic feet per day.

KRG also welcomes Dana Gas and Crescent Petroleum’s expansion of their local training and employment programs, as agreed in the arbitration settlement. The companies employ close to 500 full-time local personnel representing over 80% localisation, and have training programmes to increase this figure further.

See also the Dana Gas press release on the Gas sales agreement (external link)

(Source: KRG)

Crescent Petroleum to Increase Investment in Iraqi Gas

By John Lee.

UAE-based Crescent Petroleum is reportedly planning a significant increase in its production of natural gas at its Pearl Petroleum operations in Iraq.

President Badr Jafar (pictured) is quoted as saying that there will be an investment of $1 billion to boost production to 500 million cubic feet of gas per day by 2020, up from about 330 million cubic feet  and about 20,000 barrels per day of condensates at present.

According to Reuters, Pearl is owned 35 percent by Crescent Petroleum, 35 percent by Crescent’s affiliate Dana Gas, 10 percent by Austria’s OMV, 10 percent by Germany’s RWE, and 10 percent by Hungary’s MOL.

(Sources: Gulf News, Reuters)

New Firms Qualified for next Oil Licensing Round

By John Lee.

Iraq’s Petroleum Contracts and Licensing Directorate (PCLD) has announced the five additional companies have been approved to bid for Iraq’s “borderline onshore & offshore exploration blocks & fields.”

The companies are listed as:

  • Dana Gas (UAE)
  • Dragon Oil (UAE)
  • Geo-Jade Petroleum (China)
  • Schlumberger (USA)
  • Zarubezhneft (Russia)

Eight companies had applied for approval.

The five successful companies will be eligible to compete along with the following companies which are qualified from previous licensing rounds:

The areas to be offered include the onshore exploration blocks of Khudher Al-Mai, Jebel Sanam (Jabal Sanam) and Umm-Qasr on the Kuwaiti border; the Sindbad, Huwaiza, Shihabi, Zurbatia and Naft Khana blocks on the Iranian border; and the offshore exploration blocks in the Iraqi regional waters of the Arab gulf.

The bidding process should commence in May, according to the following schedule:

(Source: Oil Ministry)

OMV Pockets $107m from KRG Settlement

By John Lee.

Austria’s OMV has said its third-quarter clean operating result “was positively impacted” by about 90 million euro ($107 million) following a settlement over a dispute relating to the Khor Mor and Chemchemal fields in Iraqi Kurdistan.

On August 30, 2017, the Kurdistan Regional Government (KRG) and Dana Gas , Crescent Petroleum and Pearl Petroleum Company Limited reached a settlement under which the KRG agreed to immediately pay $1 billion to the consortium to settle the long-running legal dispute.

Of the EUR 90 million, OMV received approximately 60 percent as dividend from Pearl while around 40 percent was put into a dedicated accountfor future investments in Khor Mor.

(Source: OMV)

Crescent Petroleum, Dana Gas support Healthcare Centre for IDPs

By Robert Cole, AMAR Foundation.

Crescent Petroleum, one of the Middle East’s oldest and largest upstream oil companies, and Dana Gas, one of the largest private sector natural gas companies in the region, have joined forces to fund the running costs of a healthcare centre and vocational training centre for displaced people in the Kurdistan Region of Iraq for the next three years, the two companies today announced.

The three-year commitment will fund the entire running costs of AMAR International Charitable Foundation’s Primary Healthcare Centre and vocational training centre in Khanke Camp, which serve the whole community, including 16,000 Yazidi residents.

The healthcare centre plays a vital role in providing healthcare to those who would otherwise be unable to access medical support. In the second quarter of 2017, the clinic saw 26,404 cases, conducting 5,411 maternal health consultations and 2,034 child consultations.

Commenting on the donation, Crescent Petroleum’s CEO Majid Jafar said:

“At Crescent Petroleum, we aim to empower local communities by not only providing energy solutions to fuel their development, but also by responding to their social and economic needs. Internally displaced people (IDPs) are among the world’s most vulnerable populations but they are often overlooked by international relief efforts, and we are committed and honoured to assist their healthcare needs in partnership with AMAR Foundation.”

The natural gas produced by the companies from the Khor Mor field supplies more than 1,750 MW of affordable electricity to the Kurdistan Region, giving schools, hospitals and other vital entities a non-disruptive water and electricity supply for millions of people.

The Duhok Health Directorate has seen the population of the region more than double over the last two and a half years due to the massive influx of IDPs from the Sinjar and Mosul regions, putting increasing pressure on healthcare access.

Patrick Allman-Ward, Dana Gas’ CEO, said:

“Our corporate social responsibility programme has been at the heart of Dana Gas’ operations since its inception in 2005. Providing financial support to those in need is not only a moral obligation, it also has a positive impact on the communities where we operate.”

AMAR’s Chairman and Founder, the British Conservative Peer, Baroness Nicholson of Winterbourne, said she was “overwhelmed” by the generosity of Dana Gas and Crescent Petroleum:

“AMAR builds, staffs and runs five state-of-the-art heath centres on an extremely low budget. The generous donation from Crescent Petroleum and Dana Gas means we can continue with the marvellous work being done in Khanke by our locally trained doctors and nurses for the next three years.”

PLEASE CLICK HERE IF YOU CAN HELP – ANY AMOUNT LARGE OR SMALL.

(Source: AMAR Foundation)

KRG to pay $1bn to Pearl in “Full and Final Settlement”

The Kurdistan Regional Government (KRG) will immediately pay $1 billion to the Pearl Consortium, including Dana Gas, and its partners to settle a long-running legal dispute.

In a joint press release, the Kurdistan Regional Government and Pearl Consortium announced the “full and final settlement” between the two parties.

Below is the full press release:

Settlement Agreement between Kurdistan Regional Government of Iraq (the “KRG”) and (i) Dana Gas PJSC; (ii) Crescent Petroleum Company International Limited; and (iii) Pearl Petroleum Company Limited (“Pearl”); together (the “Consortium”)

The KRG and the Consortium, together (the “Parties”), signed a Heads of Agreement onc and Chemchemal fields on 4 April 2007 (the “HoA”). Subsequently a dispute arose between them concerning certain matters under the HoA, and they referred this disputeon 21 October 2013 to an arbitration under LCIA case reference number 132527 (the “Arbitration”) for decision by an arbitral tribunal (the “Tribunal”) in London.

The Parties have mutually agreed to fully and finally settle all their differences amicably by terminating the Arbitration and related court proceedings, and releasing all remaining claims between them, including the substantial damages asserted by the Consortium against the KRG; implementing a mechanism for settlement of $2,239 million awarded by the Tribunal to date ; and proceeding with immediate further development of the HoA’s world class resources for mutual benefit as well as the benefit of the people of the Kurdistan Region and all of Iraq.

The agreed settlement highlights are as follows:

  • The KRG will immediately pay Pearl a sum of US$600 million.
  • The KRG will also immediately pay Pearl a further US$400 million to be dedicated for investment exclusively for the aforesaid further development to substantially increase production.
  • Pearl will increase gas production at Khor Mor by 500 MMscf/day, a 160% increase on the current level of production (the “Additional Gas”). The Additional Gas, together with significant additional amounts of condensate, is expected to begin production in approximately two years.
  • The balance of sums awarded by the Tribunal ($1,239 million) is no longer a debt owed by the KRG and will be reclassified as outstanding cost recoverable by Pearl from future revenues generated from the HoA areas.
  • The profit share allocated to Pearl from future revenues generated from the HoA areas are adjusted upwards to a level similar to the overall profit levels normally offered to IOCs under the KRG’s Production Sharing Contracts. This adjustment reflects the larger investment risks and costs involved in the development of natural gas resources compared to oil developments. After the recovery of costs and a return on investment by the Consortium, 78% of revenues generated from the HoA areas will be for the account of the KRG, and 22% for the account of Pearl.
  • The Parties have clarified the Khor Mor block boundary coordinates and the KRG has awarded the Consortium investment opportunities in the adjacent blocks 19 and 20, and added these to the HoA areas, with commitments by the Consortium to make appraisal investments on these blocks, and developments if commercial oil and gas resources are found.
  • The KRG will purchase 50% of the Additional Gas on agreed terms to boost the gas supply to power generation plants in the Kurdistan Region. The other 50% of the Additional Gas (250 mmscf/d) will be marketed and sold by Pearl to customers within Iraq or by export, or can be sold to the KRG as well to further boost power generation within Iraq.
  • Pearl will also expand its local training and employment programs towards achieving maximum localization and content, as well as supporting local communities through its active Corporate Social Responsibility (CSR) programmes.
  • The Parties have exchanged mutual releases, waivers, and discharges in relation to all claims in relation to the Arbitration and related court proceedings.
  • The Parties have also amended and clarified the HoA language and terms, including extension of the term of the contract until 2049.

The Parties are very pleased with their settlement and and look forward to working together to maximise the full potential of the HoA areas, for their mutual benefit as well as that of the people of the Kurdistan Region and all of Iraq.

Under the settlement, the people of the Kurdistan Region and Iraq will enjoy additional revenues and improved electricity supply. The Parties believe that this settlement agreement confirms to international investors that the Kurdistan Region of Iraq offers an attractive and secure environment for investment.

H.E. Dr. Ashti Hawrami, Minister of Natural Resources of the KRG, said:

“The companies’ investment and production to date has already delivered substantial benefits for the Kurdistan Region through enabling cost-effective power generation. We are delighted by the outcome of this settlement which opens a new chapter in the relationship between the parties and will take the development of the important natural gas sector to new heights.”

Mr. Majid Jafar, CEO of Crescent Petroleum and Managing Director of the Board of Dana Gas PJSC, added:

“We have always expressed our commitment to amicable resolution of matters to enable proper development of the Khor Mor and Chemchemal fields. We are pleased with this definitive agreement which follows constructive dialogue with the KRG and promises to generate significant value for all concerned. The settlement of all debts and restoration of full cooperation gives a positive outlook for further investment and full realization of the enormous resource potential of the HoA areas.”

(Sources: KRG, Dana Gas)

KRG hits back at Dana Gas

The Kurdistan Regional Government (KRG) issued a statement regarding the partial ruling on the allocation of costs from the tribunal in the ongoing arbitration between the KRG and Dana Gas PJSC, Crescent Petroleum Company International Limited and Pearl Petroleum Company Limited (collectively “the Claimants”):

The arbitration is subject to duties of confidentiality under the applicable law and arbitration rules. Without waiving these duties of confidentiality, the KRG is obliged to correct certain public statements by Dana Gas, which quote selectively from the ruling and create an impression that is materially misleading and incomplete. In particular, the Claimants’ public statement fails to mention that:

  1. The tribunal’s ruling is only a partial ruling on some costs issues in the arbitration and is not a final determination on all costs issues (or all the other remaining issues) in the arbitration.
  2. The tribunal reduced the legal costs the Claimants had claimed by millions of dollars to reflect the “success of the KRG” in defeating the Claimants’ claim for payments for excess gas, which the Claimants had valued at over US$1.3 billion.  The tribunal held that these claims, on which the KRG succeeded in full, were “in economic terms of considerable importance.”  The Tribunal also held that the discount on their costs offered by the Claimants was “inadequate to reflect the success of the KRG on the excess gas issue.”
  3. The tribunal disallowed further significant legal costs the Claimants had claimed.  The tribunal held that the Claimants had failed to discharge their burden of showing that these costs were properly recoverable.
  4. The tribunal rejected the Claimants’ position that they should be entitled to recover 100% of the fees and costs of the LCIA and the tribunal and, again, reduced the amount awarded to the Claimants to reflect the relative success of the KRG.

The KRG regrets that, once again, the Claimants have sought to make media statements that are selective, misleading and designed to harm the KRG.  The KRG hopes that, going forward, rather than disseminating misleading information in the media for their own purposes, the Claimants will focus their energies on working together with the Government and People of the Kurdistan Region in the best interests of all concerned.

(Source: KRG)

Dana Gas Consortium wins Payment in KRG Dispute

By John Lee.

The London Court of International Arbitration (“Tribunal”) yesterday released its First Partial Final Costs Award, dated 17 July 2017 in the Arbitration between Peal Petroleum Company Limited, Dana Gas PJSC and Crescent Petroleum Company International Limited (the “Consortium”) –v- The Kurdistan Regional Government of Iraq (“KRG”).

The Tribunal ordered the KRG:

  • to pay US$ 14,046,485 to the Consortium within 28 days, together with interest at LIBOR + 2% from the date of the Award; and
  • to bear 85% of the LCIA Arbitration fees and Tribunal’s fees and expenses up to 27 November 2015 amounting to GBP 403,055.97.

The Costs Award relates to the legal costs incurred by the Consortium up to 27 November 2015.  The legal costs incurred in the Arbitration after this date will be the subject of further Costs Awards from the Tribunal in due course.

This additional order of the costs follows the 1st, 2nd and 3rd partial final awards already received on, 2 July 2015, 27 November 2015 and 30 January 2017.

The quantification of the damages for the Delayed Development Claim by the “Consortium” will be determined by the Tribunal at a further hearing scheduled to take place in September 2017.

In a statement, Dana Gas said that it and its consortium partners have invested over US$1.2 billion so far and produced over 150 million barrels equivalent of gas and petroleum liquids, which has had a transformative positive effect on the local economy in the Kurdistan Region and in particular in providing gas to fuel affordable electricity supply.

They reiterate their continued commitment to the KRG and to the people of the Kurdistan Region and all of Iraq, and hope that any outstanding matters with the MNR will be resolved, amicably and in good faith, in the shortest possible time.

(Source: Dana Gas)