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Thursday, August 29, 2013
Dana Gas is pumping away in Egypt having reached a natural gas production level of 200 Mmcf/d (41,500 boepd, including over 8,000 bpd of associated liquids). This production rate is the highest Dana has seen in two years and represents a growth of 29% over 2012’s average levels.
The company said that it’s core operations in the Nile Delta and its Egyptian Bahrain Gas Derivatives Co. (EBGDCo) Natural Gas Liquids extraction plant in Ras Shukheir remained stable and have not been impacted by the current events in Egypt.
Dana is currently in discussions with authorities on its capital expenditure plans. The company’s plans are aimed at further increasing production and resolving the issue of outstanding payments. This is in line with the government’s efforts to increase local hydrocarbon production to benefit the local population. Dana said it is conducting positive discussions with the relevant authorities and looks forward to an early resolution.
The company has several projects that are ready to be executed in order to further raise the production to around 50,000 boepd in the near future. These projects include multi-well appraisal drilling programs, adding gas compression facilities for the El Basant field, and a new pipeline connecting Salma and Tulip discoveries to the El Wastani Plant.
Dana believes that these important project investments can be expedited following the successful resolution of the issue pertaining to long-pending receivables, which are now in the order of $270 million.
Patrick Allman-Ward, GM Dana Gas Egypt and incoming Group CEO said: “Egypt remains a core part of our long-term strategy and we remain committed to enhancing production and developing our assets in Egypt. We have successfully drilled and tested three development wells over the last six months and have achieved the production rate of 41,500 boepd, our highest level since August 2011.
“We are working towards further increasing the production to 50,000 boepd in the foreseeable future. This requires further investments in the fields and early resolution of the long-pending receivables will greatly assist in accelerating our capital investment decision. Recent improvements in foreign currency reserves of Egypt and fiscal support being provided by the GCC are positive developments in this regard.”
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