Dana Gas, a regional private sector natural gas company in the Middle East, announced a successful bid in the Egyptian Natural Gas Holding Company 2012 International Bid Round that took place on April 18, 2013. The Company has also been prequalified as a non-operator in Lebanon’s first Offshore Licensing Round.
The Company was awarded 100% working interest in the North El Arish Offshore (Block 6) concession area. The area is located offshore Nile Delta, in the eastern part of the Mediterranean Sea, in water depths of up to 1,000 meters and covering an area of 2,980 km². The concession has an eight year exploration period comprised of three phases starting with an initial four year exploration period and two additional two year extension periods. A 20 year development lease period will be granted based on approved commercial discovery. It is expected that the new concession will be awarded in late 2013 following completion of the necessary procedures, which concludes when the concession is passed into law after approval by the competent authorities.
Dana Gas’ operations in the Nile Delta currently produce gas and associated liquids from 10 fields. In spite of recent operational challenges, Dana Gas Egypt produced gas, LPG, condensate and crude oil at an average rate of just over 32,200 boepd in 2012. Pending resolution of the receivables position production is slated to increase in 2013 as compression facilities are added, new fields are brought on stream and work commences on increasing the throughput of the El Wastani plant to above 180 MMscfd. Further increase of production capacity to 250 MMscfd by early 2014 is designed to maximize liquids production and optimize asset value. Dana Gas is currently the 6th largest gas producer in Egypt and is firmly committed to pursuing further investment opportunities in the region, in partnership with both local and international energy companies.
The Company has also been prequalified as a non-operator in Lebanon’s first Offshore Licensing Round. Dana Gas will be able to bid as non-operator in the licensing round which opens on May 2. As part of the bid, only consortiums of minimum three companies will be awarded a block, with each non-operator obliged to have a minimum 10% working interest. There are 10 deep water exploration blocks available, ranging from 1,500 to 2,500 square km.