2020-03-22 07:38:39

Shafaq News / Dana Gas confirmed on Sunday that its facilities and operations in Kurdistan Region of Iraq and Egypt are operating at full capacity, explaining that production rates were not affected by the spread of "Corona" virus.

Dana Gas noted in a statement to the Abu Dhabi Financial Market, that natural gas constitutes 75% of its production and is sold under long-term contracts with host governments, noting that these contracts contribute about 50% of the company's annual income and are not affected by fluctuations in oil prices.

The company confirmed that it enjoys a solid financial position, as the cash balance reached 425 million dollars by the end of last year, indicating that it does not require it to provide direct capital financing for its growth plans in Kurdistan Region.

It is noteworthy that the company confirmed at the beginning of this month that its growth plans and operations were not affected by the additional oil prices, indicating that natural gas constitutes 75 percent of its production, and is sold under long-term contracts with the host governments.

The company said in a statement to Abu Dhabi Financial Market, that gas sales constitute nearly half of the company's income, which ensures sustainable revenues even in a low oil price environment.

Oil prices deepened their losses to nearly 50 percent during the current month's trading, due to the developments of Corona crisis and the failure of OPEC and Russia to agree to deepen production cuts.

The recent meeting between OPEC and non-OPEC producers, most notably Russia, failed to reach an agreement on deepening the current supply-cutting agreement that runs until the end of this month.

Russia has rejected OPEC's request to deepen production cuts by an additional 1.5 million barrels, with the current supply cut of 1.7 million barrels continuing.

Investors are concerned about the start of a price war between oil producers, which includes increasing production from all parties after the collapse of the agreement between OPEC and Russia.

The Corona virus also continues to concern the world about the slowdown in demand for crude, especially with the high number of deaths, infections and quarantine in Italy in several cities where millions of people live.

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