Dana Gas inks deal in Egypt

Dana Gas Egypt has concluded a gas deal with the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Company (EGPC). 

This agreement forms the basis for an important development program to eventually increase production from current levels of over 40,000 BOEPD from the company’s development leases in the Nile Delta.

Under the deal, Dana Gas Egypt will undertake a long term staged work program over a seven year period with project work expected to start in the next few months and first export sales of incremental volumes of condensate following the completion of tie-in activities. As part of its work program, Dana Gas Egypt plans to drill 37 new wells and carry out an equivalent number of work-overs of existing wells.

Estimated incremental production during the period will be approximately 270 billion cubic feet of natural gas, 8 to 9 million barrels of condensate and around 450,000 tons of LPG. Peak production is expected to occur in 2017 with incremental daily production of approximately 160 MMscf gas and 5,600 barrels of condensate.

Dana Gas earlier announced that it has been awarded the blocks 1 and 3 concession areas in the onshore Nile Delta.

Press Release, September 30, 2014; Image: Dana Gas