Dana Gas, a prominent UAE-based company, is preparing to commence drilling operations on 11 new wells in Egypt this year with an investment of approximately $100 million, according to a senior company official.
Mohammed Mubaideen, the head of investor relations at Dana Gas, revealed that the investment is expected to contribute around 80 billion cubic feet of reserves and production. His statements were published in a report by Asharq Business.
Currently, Dana Gas holds four concessions in Egypt and is actively seeking their consolidation into a single concession, pending approval by the House of Representatives.
Mubaideen further stated that the drilling activities for the new wells are anticipated to begin this year.
Furthermore, the company has reached an agreement with the Egyptian Natural Gas Holding Company (EGAS) to revise the terms of its operations in Egypt. This agreement grants Dana Gas permission to extract gas from areas that previously incurred higher costs than initially agreed upon.
Egypt accounts for approximately 40% of Dana Gas’ production capacity. In 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, representing a 1% increase compared to the corresponding quarter of 2022.
However, the production rate in Egypt experienced a 10% decline during the same period.
