Dana Gas is considering establishing a new company for exploration and production

According to the Emirates News Agency, the company confirmed that in the event of the separation process, Dana Gas's shareholders will own shares in two separate companies, one of which owns exploration and production, while the other owns transportation and processing, and the two companies will be listed on the Abu Dhabi Stock Exchange.

Dana Gas currently has assets for exploration and production of oil and gas, and includes Dana Gas Egypt, and a 35% stake in Pearl Petroleum Company, the owner and operator of exploration and production in the Kurdistan region of Iraq, and these assets will collectively be known as exploration and production.

The company clarified - in a statement posted on the website of the Abu Dhabi Stock Exchange - that the activities of these two companies have completely different prospects and investment advantages, and the company’s endeavor to prepare a feasibility study on the potential separation process comes out of its conviction that the process of structuring and separating the exploration and production work from transport work And treatment in two independent companies will achieve a number of advantages and gains for shareholders.

The company explained the advantages of the restructuring process, as the separation will provide the shareholders with more flexibility to direct their investments towards the scope of work and activity they desire with each company owning assets, opportunities and business risks different from the other company, and the separation process allows for a clearer evaluation of the business of each of the two companies separately. < / p>

The company explained that after separating into two independent groups, the exploration and production and transportation and processing units will be able to improve the ways of managing their financing operations in line with their business strategies, and through direct access to the most appropriate capital to finance growth opportunities and invest in the optimal way.

After the separation, the two independent business units will be able to better manage and distribute resources, increase focus on their areas of work, and enhance resiliency in operational and strategic performance.

The company indicated that the agenda of the next general assembly included discussing the decision to allow the board of directors to conduct a feasibility study for the separation process, adding that if the general assembly agreed to that, a proposal for the separation process would be submitted again to the shareholders of the company for approval once the study was completed and obtaining the necessary approvals from the relevant authorities .

Hamid Jaafar, Chairman of Dana Gas Board of Directors, said that the company's exploration and production activities have achieved great growth over the past 13 years, and it is expected that this will continue during the coming years, explaining that limiting exploration and production operations to only one company attracts new investments at the two levels. Domestic and international in light of future production growth.

He added that creating an independent company specialized in transport and ...