Dana Gas says it will retain natural gas exploration concessions in Egypts Nile Delta region after revealing a 20 per cent increase in production in 2010.
The Middle East's largest private gas company said it chose to hold on to its 100 per cent stake and ruled out a proposed farm out which the company had muted in 2009 of up to 30 per cent, reported Emirates 24|7.
The large jump in production last year is a major factor why the Sharjah based company wants to retain full rights to the Nile Delta concessions. The boost in production was the result of seven new gasfields finds that helped increase production to 42,000 barrels of oil equivalent per day (boepd).
As Sam Ciszuk, IHS senior energy Middle East analyst, pointed out "The production increase in itself was only somewhat higher than the 40,000 boepd targeted, so last year's exploration success seems to have been the real reason swaying the company to retain its assets."
Ahmed Al Arbeed, CEO of Dana Gas, said the company made "sixteen discoveries in the Nile Delta over the past three years, reinforces our view of the remaining potential of this first class acreage."
Production continues to increase, with current production in the Nile Delta at 246 mmscfpd of gas plus 7,350 barrels per day of condensate and LPG, a total of 48,000 boepd. Dana Gas also released plans to drill 14 new wells in its Egyptian acreage during 2011 and grow its output by a further 20 per cent.
Dana Gas will continue to push on with exploration and development of further reserves, in addition to upgrading existing plants. It revised its plans to build a gas processing plant east of the Nile River, increasing planned capacity from 50 mmscfpd to 120 mmscfpd.
The ongoing increase in capacity at its El Wastani Plant will bring Dana Gas' total production to some 400 mmscfpd (67,000 boepd excluding liquids) in mid-2012.
