Dana Gas wins oil production deal in Egypt
UAE-based firm will carry out well drilling activities in Nile Delta
Dana Gas’ wholly-owned subsidiary, Dana Gas Egypt, has concluded a Gas Production Enhancement Agreement (GPEA) with the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Company (EGPC).
The deal forms the basis for a development program to increase production from current levels of over 40,000 BOEPD (barrels of oil equivalent per day) from the company’s development leases in the Nile Delta.
Under the GPEA, Dana Gas Egypt will undertake a long term staged work program over a seven-year period with mobilisation 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 270bn cubic feet of natural gas, 8 to 9mn barrels of condensate and around 450,000 tons of LPG. Peak production is expected to occur in 2017.