Dana Gas Demerger Study Gets Approval
Private UAE gas firm Dana Gas April 22 said its shareholders have approved the study that will look into the feasibility of splitting its upstream and midstream businesses and listing the former on the Abu Dhabi securities exchange.
Dana announced the demerger plan last month. Under the plan, existing shareholders would own shares in both the upstream business, which comprises operations in the Kurdistan Region of Iraq and Egypt, and the midstream business, which will hold the UAE gas project that is currently awaiting arbitration decision.
“We are also looking at enhancing shareholder value separating our upstream and midstream assets in a demerger. I would like to extend my gratitude to our shareholders for their continued support for the company and their confidence in the growth potential of Dana Gas,” chairman Hamid Jafar said.
Dana is the biggest private gas company in the Middle East. It increased production of oil and gas to 66,200 boe/d in 2019, up from 63,050 boe/d in the previous year, helping it to swing back to a net profit of $157mn.