Dana Gas, a prominent UAE-based company, is set to commence drilling operations on 11 new wells in Egypt this year with an investment of around $100 million, a senior company official has revealed.
The investment is expected to contribute approximately 80 billion cubic feet of reserves and production, said Mohammed Mubaideen, the company’s head of investor relations, in a report published by Asharq Business.
Dana Gas presently holds four concessions in Egypt and is actively pursuing their consolidation into a single concession, pending approval by the House of Representatives.
Mubaideen added that drilling activities for the new wells are expected to commence this year.
The company has also reached an agreement with the Egyptian Natural Gas Holding Company (EGAS) to revise the terms for its operations in Egypt.
This agreement grants the company permission to extract gas from areas that previously required higher costs than those originally agreed upon.
Egypt accounts for approximately 40% of Dana Gas’ production capacity. In the first quarter of this year, the company achieved an average production of 62.9 thousand barrels of oil equivalent per day in Egypt and Iraqi Kurdistan, marking a 1% increase compared to the corresponding quarter of 2022.
However, production rate in Egypt experienced a 10% decline during the same period.