Sharjah-based energy company Dana Gas PJSC (DANA:ADX) has secured US$100 million (AED 367m) financing for the Zora gas field development project, via its wholly-owned Dana Gas Explorations FZE. The Zora gas field is expected to come on stream during the first half of 2015 with a production capacity of 40 million standard cubic feet per day (mmscfd).
The Dana Gas Group is the Middle East’s largest regional private sector natural gas company with operations in Egypt and the Kurdistan Region of Iraq. The group signed a 25-year concession agreement to develop the 1,000 square kilometer Sharjah Western Offshore block, which includes the Zora gas field, with the Sharjah government in March 2008. The government of Sharjah retains a 50% working interest in the project.
The Zora gas field, which spans the territorial waters of Sharjah and Ajman, is expected to produce an average of 60 million standard cubic feet per day of natural gas, with an initial production of 40 million standard cubic feet per day. Gas from the Zora field, which will be brought to the mainland via a 25 kilometer long offshore pipeline, is expected to support the growing need for power production in Sharjah and the northern Emirates.
The US$ 100 million term facility, arranged by Emirates Bank NBD Capital Limited, will contribute the debt component of the financing needed to complete the Zora Field Development Project and bring the Zora gas field on-stream. Credit is to be provided, by syndicated banks Emirates NBD Bank, Commercial Bank International, Commercial Bank of Dubai and Barwa Bank. Barwa Bank will act as the Murabaha Investment Agent for the Shariah financed part of the facility.
Established in 2005 with over 300 prominent founder shareholders from across the Gulf Cooperation Council (GCC) region, Dana Gas PJSC is listed on the Abu Dhabi Securities Exchange.
Source: Dana Gas, media