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Dana Gas anticipates vast potential for gas from offshore Egypt asset

Wednesday 13 February 2019 01:34 PM

Dana Gas
Dana Gas

Dana Gas will drill the first offshore well in the Nile Delta in April as part of its $5 billion (Dh18.4bn) planned investment in Egypt as it bets on potential yields of up to 20 trillion cubic feet of gas, according to its chief executive, according to the Emirati The National newspaper.

“The [Block 6/North Arish] well has been delayed from February spud [drilling], which we had originally intended to in an April-May spud date,” Patrick Allman-Ward told The National on the sidelines of an energy conference in Cairo.

Dana Gas, which had struggled to receive payments from Egypt in the past is pushing ahead with investments in the most populous Arab state, which in recent years has made discovery of large reserves of gas off the Eastern Mediterranean. The North Africa's biggest economy has since launched licensing rounds to court international oil and gas companies to invest in hydrocarbons resources in the Mediterranean, Nile Delta and also potentially its Red Sea.

"We are planning to drill a deepwater well in our Block 6 this year, which in the case of success, is a four to six trillion cubic feet scale resource and we think that if the play is proven, the total block has around 20 tcf,” he told delegates attending the conference.

The Abu Dhabi-listed company said there was a 50 per cent chance of success on the concession, and he expects the results to come by “June-July timeframe”.

In the event of success, the total resource base required is around $5bn in investment in phases to produce such high volumes, said Mr Allman-Ward.