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BP, Dana Gas sign participation agreement

Sharjah-based energy company Dana Gas PJSC (DANA:ADX) has completed an agreement with global oil and gas giant BP, whereby Dana Gas will drill the first exploration well in Egypt’s Al Matariya onshore concession area. 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 US$39 million (AED 143m).

The El Matariya Onshore Concession Area is located in the onshore Nile Delta and covers an area of 960 square kilometers. It is located adjacent to Dana Gas ‘s existing West El Manzala and West El Qantara Development Leases and the recently acquired North El Salhiya (Block 1) Concession Area.

The drilling of the first exploration well in the El Matariya Concession Area is expected to start in the first half od 2016 and will take approximately 8 months to complete. Options for evacuation of the gas through Dana Gas’ nearby infrastructure will be considered by the Joint Venture established for the El Matariya Concession Area.

Dana Gas was awarded the North El Salhiya (Block 1) and El Matariya (Block 3) onshore concessions in the Nile Delta by the Egyptian Natural Gas Holding Company (EGAS) international bid round in 2014. Dana Gas Egypt has the rights to operate 100% of the EGAS Block 1 Concession Area and awarded the Block 3 Concession Area on a 50% basis together with BP as partner and operator.

Dana Gas is the Middle East’s first and largest regional private sector natural gas company with exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and UAE, with an average output of 68,900 boepd (barrels of oil equivalent per day) in 2014.

Source: Dana Gas

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