Dana Gas reported a strong first half of 2026, posting a net profit of AED 393 million ($107 million), marking a 47% increase compared to the same period last year.
In the Kurdistan Region of Iraq (KRI), the company’s Khor Mor gas field started the year at record production levels, with gas output exceeding 700 million standard cubic feet per day. Total group production reached around 70,000 barrels of oil equivalent per day.
However, operations faced challenges during the first half of the year due to regional security tensions. Intermittent disruptions and temporary suspensions at Khor Mor reduced overall utilization rates and limited the expected revenue contribution from the KM250 expansion project.
Despite these challenges, Dana Gas said the KM250 project remains a key part of its long-term growth strategy and is already helping expand gas supplies to new domestic markets.
Following increased regional tensions in July, after the reporting period ended, the company implemented temporary precautionary measures at Khor Mor. After receiving updated security assessments and assurances from both the Kurdistan Regional Government and the Iraqi government, operations resumed and production returned to normal levels to support electricity generation in the region.
At the Chemchemal gas field, development work continued under a $160 million appraisal and early development program. The company also confirmed that long-term gas sales agreements are already in place to supply up to 142 million standard cubic feet of gas per day to industrial customers across the Kurdistan Region.
A major milestone was achieved after the reporting period when gas deliveries began from the Khor Mor processing facility to Iraq’s Ministry of Electricity. Under the agreement, Dana Gas will supply 100 million standard cubic feet of gas per day to the Kirkuk Taza power station for an initial one-year period.
The company described the agreement as an important step in expanding gas sales and opening new domestic markets while helping Iraq meet its growing electricity demand.
Dana Gas also benefited from a one-time financial boost during the first half of the year. The company recognized an additional AED 176 million ($48 million) in revenue following a gas metering reconciliation at Khor Mor. The adjustment covered gas supplies delivered between November 2018 and March 2024 that had not previously been invoiced or paid.
Overall, the company said its operations in Iraq continue to play a central role in its growth strategy, despite temporary security-related challenges, with expanding gas sales and new supply agreements expected to support future performance.
