Dana Gas seeks to recover debt in new Egypt deal
DUBAI, October 8, 2014 – UAE-based natural gas exploration and production firm Dana Gas signed a Gas Production Enhancement Agreement last week with Egypt’s state-owned Egyptian Natural Gas Holding Company.
Under the terms of the agreement, Dana Gas will drill 37 new wells and carry out workover operations on a similar number of existing ones.
The seven-year work programme will begin in late 2014 or early 2015.
Dana Gas’ total production projections over the course of the project are around 7.65 bcm (270 bcf) of gas, 8-9 million barrels of condensate and around 450,000 tonnes of LPG.
Whilst increasing available natural gas for domestic use, the company expects to export the increased gas condensate production to go towards recovering the debt owed to it by the Egyptian government.
Dana Gas is owed $280 million in outstanding payments for gas production.