Dana Inks Deal with Sharjah, Ajman to Develop Offshore Gas Field

Dana Gas, an independent energy firm based in the United Arab Emirates, said Thursday in a statement that it has inked agreements with the governments of Sharjah and Ajman to develop a shared gas field located around 25 miles (40 kilometers) off the two coasts.

The set of contracts include a utilization agreement for management of the shared field, gas and purchase agreements, and a joint operating agreement.

Development works for the field include the drilling of horizontal wells and the installation of an offshore platform for processing gas. The platform will receive gas through a 16-mile (25-kilometer) offshore pipeline.

Initial gas production from the field, which will be used mainly for power generation in the two northern emirates, is expected in the first half of 2014.

The field marks the first exploration and production project for the company, it said.

Dana disclosed in a statement earlier this month that it reached an in-principle deal to restructure a $920 million Islamic bond, or sukuk, that it failed to reply on time in October. The firm added in its statement that it suffered “liquidity challenges” due to a “backlog of payments” owned by the Egyptian Government for gas supplies.

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