In a recent announcement on Wednesday, UAE-based Dana Gas disclosed its financial results for the first quarter of 2024, reporting a net profit of $38 million. This figure reflects a decline compared to the same period last year, attributed to decreased production and lower hydrocarbon prices.

The company detailed that it generated revenue of AED 356 million ($97 million) during Q1 2024, with a net profit of AED 139 million ($38 million). This represents a reduction from Q1 2023 earnings of AED 183 million ($50 million). Dana Gas noted that the decline in revenue was influenced by lower hydrocarbon prices and a 10 percent drop in production compared to the first quarter of 2023.

Dana Gas, a significant player in the Kurdistan Region of Iraq's energy sector, has been grappling with security challenges at its Khor Mor gas field. A recent deadly drone strike targeted the field, resulting in casualties among employees and halting gas production. Dana Gas CEO Richard Hall expressed deep condolences to the families affected by the incident and highlighted the importance of enhanced security measures before restoring full production.

The drone strike has potentially impacted the completion schedule of Dana Gas's expansion project, KM250, which aims to boost gas production at the Khor Mor site to 700 million standard cubic feet per day.

Despite the setbacks, Dana Gas emphasized its commitment to meeting the Kurdistan Region's gas demands and expressed optimism about overcoming security threats to achieve production goals.

The ongoing security challenges at Khor Mor have been a source of tension between the Kurdistan Regional Government (KRG) and the federal government in Baghdad. Responsibility for aerial protection of the site has become a point of contention, with differing statements from Iraqi officials on the matter.

The attacks on Khor Mor, attributed to Iran-backed Iraqi militias, have not only disrupted gas production but also caused significant power outages in the Kurdistan Region. Dana Gas continues to work closely with authorities to strengthen defenses and resume operations safely.

Despite these challenges, Dana Gas remains committed to its long-term objectives, including the development of the Kurdistan Gas City project, aimed at promoting private sector investment and leveraging the region's substantial gas resources.

The company's resilience and determination to navigate the complex security environment underscore its strategic importance in the Kurdistan Region's energy landscape. Dana Gas's efforts to bolster security measures and resume production highlight the crucial role it plays in meeting the region's energy needs amidst ongoing security threats.