Based on its plans to develop discoveries in Egypt, expand gas output from northern Iraq and bring a Sharjah offshore gas field into production, Dana Gas has set its target.
Dana Gas aims for 76% output rise
Dana Gas has set a target of boosting its oil and gas production by 76 per cent by the end of this year, based on its plans to develop a string of recent discoveries in Egypt, to expand gas output from northern Iraq and bring a Sharjah offshore gas field into production. The Sharjah-based company said it planned to increase its total oil and gas production to 68,000 barrels of oil equivalent (boe) per day from less than 39,000 boe per day over the course of the year. It said it was in a "solid cash position" to fund its oil and gas development programme, having raised US$1 billion (Dh3.7bn) in an Islamic financing deal in late 2007, before credit markets tightened. Hamid Jafar, the executive chairman of Dana, said the company would proceed with "fast-track" development of Sharjah's Zora gas field. He predicted it would double output this year from a gas development in Iraq's Kurdistan region, while bringing its three recent gas discoveries and an oil discovery into production in Egypt. In addition, Dana hopes to see the "long-awaited" start of Iranian gas imports to the UAE this year under a project it is pursuing with its Sharjah affiliate, Crescent Petroleum, he said. That project has been stalled due to Iranian construction delays and a protracted dispute between Tehran and Crescent over the price of the gas, which would be produced from Iran's offshore Salman gas field in the Gulf. Crescent's undersea pipeline, connecting the gas field to a receiving terminal in Sharjah, has been sitting empty for more than three years, while Dana has lost out on expected revenues from marketing and distributing the gas to industrial customers in the UAE. Dana's other offshore project, the Zora development, is likely to be less problematic. The company signed a 25-year concession last March to develop the field and explore Sharjah's western offshore area for further oil and gas deposits. It agreed to spend $55m on the gas field development and a further $65m on exploration. In Iraq, Dana is developing the Khor Mor gas field with Crescent. The two companies together are investing $650m in gas production, transportation and processing facilities, and expect gas output to reach 300 million cubic feet a day this year. Dana also said it is hoping to announce further discoveries in Egypt that could double its reserves there. firstname.lastname@example.org