Dana Gas has secured, through its wholly-owned subsidiary Dana Gas Explorations FZE, a US$100mn term facility for the Zora Field Development Project situated offshore Abu Dhabi
According to the company, this facility will contribute to the finance needed to complete the project and bring the Zora gas field on stream.
The Zora gas field, which spans the territorial waters of Sharjah and Ajman, comprises a tilted fault block structure with a closure of some 25 sq km. Once on stream, Zora will provide an additional source of gas for local power generation in the northern Emirates with an expected production capacity of 6,650 boepd.
The credit facility will be provided by Emirates NBD Bank, Commercial Bank International, Commercial Bank of Dubai and Barwa Bank.
Emirates NBD Bank will also act as the global facility agent, term facility agent, security agent and account bank while Barwa Bank will act as the Murabaha investment agent for the Shariah tranche of this loan.
The repayment for the term facility is over a period of 15 quarterly investments and will commence in the second half of 2015 on completion of the project and gas production goes on stream, subject to a cash sweep mechanism, Dana Gas said.
The facility is currently scheduled to mature on 30 November 2018. Until June 2014, Dana Gas has spent approximately US$49mn as part of the equity financing for the project.
Patrick Allman-Ward, CEO of Dana Gas said, “This financing agreement demonstrates the confidence leading banks and financers have towards the Zora project. The project work is proceeding as per plan and we remain committed towards bringing the project on stream in the first half of 2015. Natural gas produced from the field will provide a much needed source of clean energy for the benefit of the northern Emirates of the UAE.”
