Daily News Egypt: Dana Gas Signs Agreement with Petroleum Ministry to Increase Gas Production
The United Arab Emirates (UAE) is holding a conference entitled “Invest in Egypt” this month to discuss investment opportunities and incentives for Arab and international companies to implement projects. The Daily News Egypt interviewed Patrick Allman-Ward – CEO of Dana Gas, the most prominent UAE oil company operating in Egypt..
What are the major developments in Dana Gas’ work in the Egyptian petroleum sector?
An agreement has been finalised to increase gas production and allow the company to export condensates in exchange for repaying debts owed to Dana. A contract was also signed with EGAS and the Egyptian General Petroleum Corporation (EGPC). The contract represents an important basis for a programme of rapid development to increase production from current levels, which are more than 40,000 barrels of oil per day, from fields in the Nile Delta.
What are details of the agreement to increase gas production during the coming phase?
According to the agreement, the programme will stretch over a seven-year period, and work will commence during the coming months. The first condensates will be sold after wells are connected, according to the agreed programme of work.
The value of company assets will increase as agreement revenues will be allocated to the company, and they will also contribute to reducing the size of debts owed to the company in Egypt to their lowest levels in 2018. This will be possible due to revenues from direct sales of all condensates at global market prices.
It is expected that capital investment for the agreement will be funded from cash flow from Dana Gas operations in Egypt as well as funds allocated to project financing.
We are pleased to announce an agreement with the Egyptian government to increase gas production, which is a new step for the company in Egypt. This is a good example of partnership between the public and private sectors, which will add significant value by increasing gas production, for which there is growing demand on the local market.
Also, through this agreement, we will be able to receive overdue sums and maximise benefits from company assets in Egypt. This will help us achieve ideal value for our shareholders over the long term. MORE