Dana Gas to expand Egypt operations

05-18-2007

Dana Gas, the Middle East's first private sector regional natural gas company, has announced its intention to expand its gas operations and investments in Egypt's growing natural gas industry. The company was sponsoring the leading conference for the natural gas industry in Egypt, INTERGAS IV, which has been held from the 15th - 17th May 2007 at the Cairo International Convention and Exhibition Centre.

Dana Gas was participating in the conference and exhibition and has hosted the lunch on the opening day following the inauguration, attended by H.E. Eng. Sameh Fahmy, Egyptian Minister of Petroleum, H.E. Mohamed Bin Dha'en Al-Hamili, UAE Minister of Energy, and H.E. Shaikh Ali Al Jarah Al Sabah, Kuwaiti Minister of Oil and current President of OPEC.

"Dana Gas is proud to be a major gas producer in Egypt, and is firmly committed to expanding its operations and investments in the growing Egyptian natural gas sector," said Mr. Rashid Saif Al-Jarwan, General Manager of Dana Gas, speaking at the Intergas IV Conference in Cairo. "Through wise leadership and good energy policies, Egypt has doubled its natural gas reserves in the last five years to over 70 trillion cubic feet, and now produces more gas than oil and is already among the world's top ten exporters of LNG."

Recognized as the largest energy trade show for the Egyptian natural gas industry, INTERGAS IV is attended by the leading international energy companies and expects more than 800 delegates with an interest in Egypt's oil, gas, and petrochemicals sectors. There are currently 64 companies active in Egypt's oil & gas sector.

Dana Gas, listed on the Abu Dhabi Stock Market, is currently the 6^th highest gas producer in Egypt, and the 9^th highest oil & gas producer in terms of barrels of oil equivalent (boe), through the activities of its exploration and production division, Centurion Energy. Dana Gas also benefits from exploration potential of 26,300 square kilometers in the Nile Delta and Southern Egypt, and has been approached by several of the major international energy companies for potential collaboration in this area. Last month Dana Gas signed a farm-out agreement with Kuwait International Oil & Environment Company (KIOEC), to participate with a fifty percent working interest in the Komombo Concession in Southern Egypt.

In the area of gas processing, Dana Gas is commissioning the El Wastani LPG plant, which will boost the revenues from its gas production, and is also leading the development of the Gulf of Suez Gas Liquids Plant, in partnership with the Egyptian Natural Gas Holding Company (EGAS) and the Arab Petroleum Investment Corporation (APICORP).

Dr. Hany Elsharkawi, Dana Gas Egypt Country Director, added: "Egypt benefits from a large and growing domestic market for natural gas, as well as export schemes through both LNG and pipeline. We at Dana Gas are firmly committed to pursuing further gas investments in Egypt, in partnership with the national Egyptian companies and other energy companies from the region and internationally."

In addition to its participation in INTERGAS IV, this week also sees Dana Gas sponsoring the 7th Annual Oil & Gas Pipelines in the Middle East Conference in Abu Dhabi, UAE on 14 - 15 May. Dana Gas is in joint venture partnership with the Emirates General Petroleum Corporation (Emarat) to build, own and operate a 30 km, 48 inch, common-user gas pipeline in the UAE from the Sharjah gas hub at Sajaa to the Hamriyah Free Zone (HFZ), with a capacity of one billion cubic feet per day, to serve power plants of the Federal Electricity and Water Authority of the UAE (FEWA), the Sharjah Electricity and Water Authority (SEWA), and industrial customers in the Hamriyah Free Zone (HFZ). The implementation of the project has made good progress and is on schedule for completion by end September of this year.