Dana Gas starts output from 2 Egypt fields
Dubai, March 5, 2013
Dana Gas has increased its gas production in Egypt by about 10 percent with the start up of operations at two new fields, the UAE-based company said on Tuesday.
The West Sama-1 and Allium-1 fields in Egypt have started commercial operations less than two months after initial well testing, Dana Gas said in a statement.
"The wells increase our production by 20 million cubic feet per day, providing much needed additional production to the Egyptian market and maintaining vital supplies of gas for power generation," Rashid Al Jarwan, the company's acting chief executive, said.
Sharjah-based Dana Gas discovered three gas fields during drilling in Egypt's Nile Delta Basin last year. It plans to bring the third, Balsam-1, into production in the first half of 2013.
Production from the first two is expected to add 3,450 barrels of oil equivalent per day (boepd) to Dana's output rate of 32,000 boepd in Egypt at the end of 2012.
Gas production at West Sama-1 and Allium-1 has been routed through the company's South El Manzala and El Wastani gas plants, respectively, the company said.
Delays getting paid for supplies of natural gas to Egypt and Kurdistan forced the company to restructure its debt late last year after failing to pay a $920 million Islamic bond on maturity in October.
Dana Gas said in the statement to the Abu Dhabi stock exchange that it received $163 million in outstanding receivables from the Egyptian government in 2012 and that "constructive discussions" over the remaining payments were ongoing.
Egypt's economy has been shaken by political turmoil since a popular uprising unseated President Hosni Mubarak in early 2011, and the government has fallen behind in its payments to several fuel suppliers. – Reuters