Business | Oil & Gas
Dana Gas projects in UAE, Egypt and Iraq hit $500m
Dana Gas, a regional private-sector natural gas company, has announced investments of over $500 million this year in its projects in northern Iraq, Egypt and the UAE
- Staff Report
- Published: 23:18 May 18, 2008
- Image Credit: Supplied Picture
- A drilling rig of Dana Gas in Egypt. Dana Gas recently signed a 25-year concession for exploration and development of gas in Sharjah.
Dubai: Dana Gas, a regional private-sector natural gas company, has announced investments of over $500 million this year in its projects in northern Iraq, Egypt and the UAE.
Dana Gas posted revenues of over Dh1 billion in 2007, its first year of operations.
The year also saw the company add to its UAE positions major new entries into the gas upstream business in Egypt and the Kurdistan region of Iraq, while raising $1 billion in an international sukuk offering that had to be increased in size following strong investor demand.
The company's announced investments for 2008, covering all sectors of the gas industry from the upstream through to the downstream, are expected to realise the value of these strategic positions and further boost revenues over the next stage of Dana Gas's development.
"This year is important for the company, as we will be building upon the important milestones and solid foundations achieved last year, and making major investments that will rapidly take Dana Gas to a new level in its growth and development," said Ahmad Al Arbeed, Dana Gas executive director - Upstream.
Joint venture
Dana Gas is currently implementing a major integrated gas project in Iraq's Kurdistan region on a fast-track basis in a record time of just one year, in a 50:50 joint venture partnership with Crescent Petroleum, at a combined investment of $650 million.
The project, which involves gas development, production, processing and pipeline construction, is the largest private sector energy project in Iraq, and it is already over 80 per cent complete.
The first gas production from the project is on target for the middle of this year, building up to a production of 300 million cubic feet per day by the year-end, approximately twice the company's current production in Egypt.
Dana Gas's agreements with the Kurdistan Regional Government of Iraq were signed in April 2007, and they cover a range of energy-related services and the building of substantial infrastructure to process and transport natural gas, as well as the development of the first "Dana Gas City".
In the UAE, in addition to preparing for start-up for the processing and supply of imported gas, Dana Gas has recently signed a 25-year concession agreement for exploration and development of gas in an area of over 1,000 square kilometre offshore Sharjah, including development of the Zora Gas Field.
The development plans are being finalised with the tenders for offshore oilfield services soon to be awarded for fast-track implementation to produce gas in 2009.
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