Dana Gas ended 2008 in a healthy financial position, with revenues up 10 per cent on 2007 to AED1.14bn, and net profits increasing by 8 per cent to AED120m.

Second-quarter results for 2009 were also positive, with the company posting net profits of AED392m, compared with AED34m in the same period of 2008. The increase is mainly due to gas condensate sales from the com-pany’s operations in the Kurdistan region of Iraq, and highlight the strength of the company despite the challenging economic climate.

However, Dana Gas’s projects in Iraq’s Kurdistan region have been criticised by Baghdad. In May, Iraq’s Oil Ministry said an $8bn deal between the KRG and energy producers to supply gas to the Nabucco pipeline, a planned gas pipeline from the Caspian Sea to Austria, contravened Baghdad’s existing export rules.

Crescent Petroleum and Dana Gas signed a deal on 17 May with OMV and MOL to fast-track the development of the Khor Mor gas field in Kurdistan.

However, one source at the Iraqi oil ministry says Crescent and Dana Gas cannot export the gas because the firms have not received approval from Baghdad.

Despite this setback, Dana Gas’s strong financial results for 2009 show the company is well placed to continue its policy of acquiring existing gas projects and industries across the Gulf, and further building up its presence in the market.