Dana Gas to Pursue Further Expansion Projects in Egypt

Dana Gas to Pursue Further Expansion Projects in Egypt

07-05-2007

Egypt is proving to be a hive of action for Dana Gas, which has named new discoveries and investment interests in the country.

The company announced a new gas and condensate discovery from its El Wastani West-2 well (EWW-2). Centurion Petroleum Corporation, the upstream division of Dana Gas, drilled the EWW-2 well to 3 175 m and estimates of recoverable reserves from this new pool are being evaluated.

"We are excited about this discovery as it enhances the prospects of the area west of El Wastani field currently being explored," said Hany Elsharkawi, Dana Gas country director in Egypt.

LPG extraction facilities at the El Wastani field have also been in operation since the start of the year and according to Elsharkawi, Dana Gas is expecting their success to have a significant positive impact on company revenues.
According to a company statement, a study of Dana Gas's exploration and production acreage is nearly finished. It is claimed the study shows potential new drilling locations in already active areas, as well as new high-volume deeper reservoirs. Drilling programmes are active in the West El Manzala and West El Qantara concessions and in the frontier area of Upper Egypt, Centurion has spudded its first exploratory well Komombo-4, in May, in partnership with Kuwait International Oil & Environment Company.

In another part of the energy sector Dana Gas has completed acquisition of its Bahraini affiliate, Danagaz Bahrain. The company will be owned 66% by Dana Gas and 34% by Bahraini partners. The consortium's first investment will build, own and operate the Gulf of Suez Gas Liquids Plant in Egypt.

This project involves the creation of a gas liquids extraction and manufacturing plant near Ras Shukheir, on the western shore of the Gulf of Suez. The plant will be capable of processing approximately 55 billion cubic feet per year of natural gas and will produce approximately 120,000 tonnes per year of propane and butane in liquid form.

"In addition, the Gulf of Suez Gas Plant Project, further strengthens our strategic position in Egypt, and also enhances our regional capabilities in the region's important gas processing sector, where we already have several gas processing plants, including in Egypt, the UAE and another two being established in Northern Iraq," said Rashid Saif Al-Jarwan, General Manager of Dana Gas.

Dana Gas is currently Egypt's sixth largest natural gas producer and the company is pursuing further expansion projects in North Africa.