Dana Gas, headquartered in the UAE, released its preliminary financial results for the fiscal year 2023, revealing a 12 percent decrease in net profit compared to the previous year. Despite challenges stemming from lower hydrocarbon prices, the company demonstrated operational resilience with an increase in production.

According to the company's report, Dana Gas recorded a net profit of AED 586 million ($160 million) in 2023, down from AED 667 million ($182 million) in 2022. This decline was primarily attributed to reduced realized hydrocarbon prices, although partially offset by heightened production levels in the Kurdistan Region of Iraq (KRI) and decreased operating costs.

Dana Gas, in collaboration with Crescent Petroleum, has been instrumental in developing the Kurdistan Region's substantial gas resources since striking a deal with the Kurdistan Regional Government (KRG) in 2007. Notably, the company operates the Khor Mor field, a critical gas reservoir in Sulaimani province's Chamchamal district.

Throughout 2023, Dana Gas made significant strides in enhancing production capabilities, achieving a record output of 520 million standard cubic feet per day (MMscf/d) in November. This accomplishment, contributing to an 8 percent increase in net production in the Kurdistan Region, underscores the company's commitment to optimizing resources.

Looking ahead, Dana Gas remains focused on maximizing the value of its assets in the KRI and Egypt. Richard Hall, CEO of Dana Gas, emphasized the company's operational strength amid challenges, stating, "2023 was an operationally strong year for Dana Gas, but not without its challenges."

However, security threats loom over Dana Gas's operations in the Kurdistan Region, particularly targeting the strategically significant Khor Mor field. Recent incidents, including a drone strike on a liquid storage tank in late January, have disrupted gas production and caused significant power outages in the region.

Despite these challenges, Dana Gas remains resolute in its commitment to meeting the Kurdistan Region's gas demands. With ongoing expansion projects such as KM250, expected to increase gas production to 700 MMscf/d by 2024, Dana Gas seeks to bolster its operational capacity while navigating security concerns in the region.

The company's ability to maintain operational momentum amidst external pressures underscores its resilience and strategic importance in the energy landscape of the Middle East.