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22 June 2024

Dana Gas signs $110m offshore gas deal

By Agencies

The United Arab Emirates Dana Gas has signed a $110 million deal to explore and develop gas offshore of the emirate of Sharjah, Dana Gas said in a statement on Wednesday.

The 25-year concession is Dana's first offshore asset, the company said.

The concession area is over 1,000 square kilometres and the agreement covers the development of the Zora gas field, discovered in 1979.

Dana will continue drilling two wells at Zora that its affiliate Crescent Petroleum had started at the field. It will also install offshore platforms to process the gas and a 25km pipeline to bring the gas to shore. It will also explore elsewhere in the concession.

The development at Zora will cost around $55 million, and exploration a further $65m (Dh238.5m).

The UAE needs more gas to meet rapidly rising domestic demand from industry and power plants.

Dana holds onshore assets in Egypt and is developing gas fields and pipelines in northern Iraq. (Reuters)