Dana Gas Successfully Bids for Egyptian Offshore Acreage
Dana Gas, the Middle East’s leading regional private sector natural gas company, has announced it was a successful bidder in the Egyptian Natural Gas Holding Company 2012 International Bid Round that took place on 18th April 2013.
The Company was awarded 100% working interest in the North El Arish Offshore (Block 6) concession area. The area is located offshore Nile Delta, in the eastern part of the Mediterranean Sea, in water depths of up to 1,000 meters and covering an area of 2,980 km². The concession has an 8 year exploration period comprised of three phases starting with an initial four year exploration period and two additional two year extension periods. A 20 year development lease period will be granted based on approved commercial discovery. It is expected that the new concession will be awarded in late 2013 following completion of the necessary procedures, which concludes when the concession is passed into law after approval by the competent authorities.
Rashid Al-Jarwan, Executive Director and Acting Chief Executive Officer of Dana Gas said: “We are pleased with the outcome of this bid round and look forward to the exploration and development of this very prospective new concession. The award of this concession demonstrates Dana Gas’s confidence in Egypt over the long term and the Company’s desire to optimize its coast investments and maximize the value of its portfolio of opportunities. We continue to engage in a constructive dialogue with government entities and the Ministry of Petroleum to resolve the issue of the outstanding receivables.”
Dr. Patrick Allman-Ward, General Manager of Dana Gas Egypt, stated: “We are delighted with this award which confirms Dana Gas’ belief in the remaining petroleum potential in Egypt and the Company’s long term commitment to the country. We believe Block 6 holds significant potential, lying as it does on strike with recent material discoveries in adjacent acreage in the Levantine Basin. The Block provides an opportunity for Dana Gas to expand its operating activities in Egypt into both shallow and deep water operating environments.”
Dana Gas’ operations in the Nile Delta currently produce gas and associated liquids from 10 fields. In spite of recent operational challenges, Dana Gas Egypt produced gas, LPG, condensate and crude oil at an average rate of just over 32,200 boepd in 2012. Pending resolution of the receivables position production is slated to increase in 2013 as compression facilities are added, new fields are brought on stream and work commences on increasing the throughput of the El Wastani plant to above 180 MMscfd. Further increase of production capacity to 250 MMscfd by early 2014 is designed to maximize liquids production and optimize asset value. Dana Gas is currently the 6th largest gas producer in Egypt and is firmly committed to pursuing further investment opportunities in the region, in partnership with both local and international energy companies.