Abu Dhabi: UAE-based Dana Gas said that it has completed an agreement with BP in which the latter will charge Dana for the drilling of the first exploration well in the Al Matariya onshore concession area in Egypt’s Nile Delta.
The concession was awarded to BP and Dana in the EGAS 2014 International Bid Round. Under the terms of the agreement, BP as the operator will carry Dana Gas for its 50 per cent share of the cost of the well, subject to an agreed cap of $39 million (Dh143.27 million), which is Dana’s share, the company announced in a statement.
In consideration for the carry, BP has the option, subject to government approval, to farm into parts of Dana Gas’s West Al Manzala (WEM) concession area while retaining WEM operatorship and ownership of the existing and future shallow gas business with Dana Gas.
The drilling of the first exploration well in the Al Matariya concession area is expected to start in first half of 2016 and will take approximately eight months to complete.
Dr Patrick Allman-Ward, CEO of Dana Gas, said they were excited to be partnering with BP in drilling the Oligocene play onshore in the Nile delta.
“A successful well result could lead to substantial growth for the company in Egypt, open up the onshore Oligocene play in the Nile delta and could ultimately lead to a material increase in onshore gas production in Egypt,” he said.
Dana Gas said it is the sixth-largest gas producer in Egypt and is firmly committed to pursuing further opportunities in the region, in partnership with local and international energy companies.
