Petroleum Africa
Find us on: 
Wednesday, June 3, 2015
Dana Gas and BP have finalized an agreement whereby BP will carry Dana Gas for the drilling of a first exploration well in the El Matariya Onshore Concession Area in Egypt’s Nile Delta. The acreage was awarded to the pair as part of EGAS’ 2014 International Bid Round.
Under the terms of the agreement, BP as operator will carry Dana Gas for its 50% share of the cost of the well, subject to an agreed cap of $39 million (Dana Gas share).
In consideration for the carry, BP has the option, subject to government approval, to farm-in to parts of Dana Gas’ West El Manzala (WEM) Concession Area while retaining WEM operatorship and ownership of the existing and future shallow gas business with Dana Gas.
In addition, BP has a further option, again subject to government approval, to farm-into other areas of Dana Gas’ WEM Concession and into the recently-awarded North El Salhiya Concession Area, for a 50% participating interest in each case, if it elects to drill a second exploration well and carry Dana Gas’50% share of the related well costs; again subject to a similar agreed cap.
As with the first farm-in option, operatorship and ownership of the existing and future shallow gas business of the farm-in areas will remain with Dana Gas.
The El Matariya Onshore Concession Area is located onshore Nile Delta and covers an area of 960 sq km. It is located adjacent to Dana Gas’ existing West El Manzala and West El Qantara Development Leases and the recently acquired North El Salhiya (Block 1) Concession Area.
According to Dana Gas the first exploration well on the concession is expected to start in H1 2016 and will take approximately eight months to be completed. Options for evacuation of the gas through Dana Gas’ nearby infrastructure will be considered by the JV established for the El Matariya Concession Area.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
