Dana Gas Plans Egyptian Expansion
Dana Gas, the Middle East's first regional private-sector natural gas company, has become the sixth highest gas producer in Egypt, through the activities of its exploration and production subsidiary, Centurion Energy. The company is also among the nine highest producing companies by production of barrels of oil equivalent (boe), out of the 64 companies active in Egypt's oil & gas sector.
Centurion Energy was acquired by Dana Gas in a US$ 950 million deal that cements Dana Gas' important position in the upstream exploration and production sector for natural gas in the Middle East. Centurion ended 2006 with estimated gas reserves of approximately 100 million boe, gas production of over 31,000 boe/ day, and operating cash flows of approximately US $90 million. Dana Gas will also benefit from Centurion's further exploration potential of 26,300 square kilometers in the Nile Delta and Upper Egypt, and has been approached by several of the major international energy companies for potential collaboration in this area.
In addition, Centurion provides Dana Gas with access to a team of over 150 highly skilled multidisciplinary management and technical staff, plus over 80 operations staff, with a proven track record in finding, developing, and producing natural gas reserves in the Middle East region.
"We are excited about the company's Egypt operations and potential for expansion, and are firmly committed to investing further in the natural gas industry there, which has seen tremendous growth in recent years," said Rashid Saif Al-Jarwan, General Manager of Dana Gas. "In addition, we aim to benefit from the capabilities and experience in Centurion to further expand our exploration and production activities throughout the Gulf region and the wider Middle East, including North Africa."
Dr. Hany Elsherkawi, President and General Manager of Centurion Egypt, added: "The company has achieved some important operational milestones recently, including the first LPG sales from our newly commissioned El Wastani plant with capacity of 160 million cubic feet per day, which will add considerable value to our gas sales. In addition, the completion of drilling of the EWE-1 ST2 well, which is due to come onto production shortly, will add 10 million cubic feet per day to our total gas production."
Egypt's proven natural gas reserves have doubled in the last five years to 70 trillion cubic feet, with gas production in the country now exceeding its oil production. In a recent announcement, Egypt's Petroleum Ministry stated that in the past five years gross foreign direct investment (FDI) in oil, gas and petrochemicals amounted to US $9.5 billion. The Ministry added that the target for the next five years is to secure FDI of US $25 billion in petroleum projects. By 2010 annual exports, mainly of gas and petrochemicals, are set to reach US $10 billion.
Centurion Energy, now a wholly-owned subsidiary of Dana Gas and the company's upstream division, is currently actively engaged in exploration and production operations from 10 development leases and 4 exploration licenses in Egypt, Tunisia, and offshore West Africa, and has offices in Calgary, London, and Cairo.
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