Dubai: Dana Gas said on Wednesday that it started production from the Zora Gas Field on February 28, off the coasts of Sharjah and Ajman.
The field is expected to achieve a flow rate of 40 million cubic feet a day, or 6,650 barrels of oil equivalent, it said in a statement.
Initial project start-up took place on January 14, with early gas supplies being intermittent as the gas plant was being fully commissioned.
“Zora is our first development project in the UAE and as such, represents a significant milestone in the company’s 10 year history. The project represents a considerable investment by Dana Gas and the resulting gas output will support clean, domestic power generation for Sharjah for years to come,” Patrick Allman-Ward, CEO of Dana Gas, said in a statement.
“Our exploration and development activities in the UAE and in Egypt will provide a short- to medium-term boost to our overall production levels and thereby help to offset the decrease in revenue and profits resulting from the current low oil price environment,” he added.
Dana Gas is the operator with a 100 per cent interest, and will manage the field and the gas sales and purchase agreements.
The gas is being transported through a subsea pipeline to a newly built onshore gas processing facility constructed by Dana Gas and located in the Hamriyah Free zone in Sharjah, the company said.
Dana Gas shares were up 1.96 per cent on Wednesday, closing at Dh0.52 on the Abu Dhabi Securities Exchange (ADX).
