Dana Gas to invest more than $500m in projects - Emirates24|7

Dana Gas to invest more than $500m in projects

Dana Gas, the Middle East's first and largest regional private-sector natural gas company, will invest more than $500 million (Dh1.83bn) this year in the different projects in Northern Iraq, Egypt and the UAE.

The company's investments will cover all sectors of the gas industry from the upstream through to the downstream, Dana said.

Last year, the company posted revenues of more than Dh1bn and also saw the addition of major new entries into the gas upstream business in Egypt and the Kurdistan Region of Iraq. It also raised $1bn in an international sukuk offering, that had to be increased in size due to investor demand.

"This year is an important year for the company as we will be building upon the important milestones and solid foundations achieved last year, and making major investments that will rapidly take Dana Gas to a new level in its growth and development," said Ahmed Al Arbeed, Dana Gas Executive Director of Upstream.

"Dana Gas has already established strong positions in all areas of the natural gas business in the UAE, Egypt and Iraq, and we will continue to build upon these as well as expand into new countries in the GCC Region and North Africa, especially in view of the record oil prices currently witnessed."

"Our focus this year will be implementing the important projects in the UAE and the Kurdistan Region of Iraq, while significantly expanding the drilling programme of new wells in Egypt in light of the encouraging new discoveries we have already achieved," Al Arbeed added.

In the UAE, in addition to preparing for start-up for the processing and supply of imported gas, Dana Gas has recently signed a 25-year concession agreement for exploration and development of gas in an area of 1,000 sq km offshore of Sharjah, including development of the discovered Zora Gas Field.

The development plans are being finalised with the tenders for offshore oilfield services soon to be awarded for fast-track implementation to produce gas in 2009.

In Egypt, the company plans to drill 19 more development and exploration wells this year at an investment of $170m, following positive exploration results by Dana Gas including new gas discoveries and the first commercial discovery of oil in the Upper Egypt region.