Business | Oil & Gas
Dana Gas targets 76% rise in output with new investments this year
Dana Gas expects a strong growth in both production and operations in 2009, building on the company's significant achievements last year.
- Staff Report
- Published: 23:38 January 7, 2009
Abu Dhabi: Dana Gas expects a strong growth in both production and operations in 2009, building on the company's significant achievements last year.
Dana Gas plans to increase total production by 76 per cent or 68,000 barrels of oil equivalent per day by the end of 2009.
In addition, the company will be starting the construction of the LPG recovery plant in Ras Shuqair, and will be conducting feasibility studies for other similar projects in Egypt.
In March 2008, Dana Gas signed a 25-year concession for the Western Offshore Area of Sharjah, and to develop the Zora Gas Field within the block.
The concession agreement covers a total area of over 1,000 square kilometres including the Zora Gas Field, which has established gas reserves and a ready high value market.
The company earned revenue of Dh901 million in the first nine months of 2008, with production rising over 50 per cent with its major gas project in Kurdistan coming online, and further discoveries in Egypt.
The company also stated that it has no exposure to real estate or stock market investments, and is in a solid cash position to fund its project requirements, having successfully raised $1 billion in a convertible sukuk in late 2007 despite a tightening credit market.
Dana Gas executive chairman Hamid Jafar stated that 2008 was an excellent year for Dana Gas, and that the company will continue to build on its important asset base in 2009, and already has major plans underway for the coming year.
"Looking forward to 2009, Dana Gas will continue to implement our strategies for growth and expansion, focusing on capturing new opportunities through both acquisition and new project development.
"This year will see the long-awaited sta rt-up of the UAE Gas Project and fast-track development of the Zora Gas Field in Sharjah, while our production in the Kurdistan Region of Iraq will progressively increase to 300 million standard cubic feet per day, and our recent new discoveries in Egypt will also be brought into production, while we continue with further extensive developmental activities in all our projects."
One of the firm's most notable achievements for the year was the delivery of gas in its major joint project with Crescent Petroleum in the Kurdistan Region of Iraq in a record time of 15 months.
With an investment of $650 million, the project is the largest private-sector investment in Iraq today and the largest private-sector oil and gas project in Iraq for several decades.
The delivery of first gas enabled Dana Gas to announce in November that its production was up by over 50 per cent.
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