Dana Gas, a prominent UAE-based company, is gearing up for an ambitious investment of approximately $100 million to commence drilling operations on 11 new wells in Egypt this year. The initiative is expected to contribute a substantial 80 billion cubic feet of reserves and production, according to Mohammed Mubaideen, the company’s head of investor relations.
Presently holding four concessions in Egypt, Dana Gas is actively pursuing their consolidation into a single concession, pending approval by the House of Representatives. This strategic move aims to streamline operations and optimize efficiency.
The company has also successfully reached an agreement with the Egyptian Natural Gas Holding Company (EGAS) to revise the terms for its operations in Egypt. This agreement grants Dana Gas permission to extract gas from areas that previously required higher costs than initially agreed upon, further bolstering the company’s operational capabilities.
Egypt plays a vital role in Dana Gas’ production capacity, accounting for approximately 40% of its overall output. During the first quarter of this year, the company achieved an average production of 62.9 thousand barrels of oil equivalent per day in Egypt and Iraqi Kurdistan, marking a notable 1% increase compared to the corresponding quarter in 2022. However, it is important to note that the production rate in Egypt experienced a 10% decline during the same period, reflecting the dynamic nature of the energy sector.
As Dana Gas sets its sights on expansion and optimizing its presence in Egypt, the significant investment in new wells reflects the company’s commitment to tapping into Egypt’s vast energy potential and further contributing to the nation’s energy security and economic growth.