Dana Gas investing over $500 million in 2008

Offshore staff

SHARJAH, UAE -- Dana Gas PJSC has plans to invest more than $500 million this year in projects in Northern Iraq, Egypt, and the UAE.

"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," says Ahmed Al-Arbeed, Dana Gas executive director. "Our focus this year will be implementing the important projects in the UAE and the Kurdistan region of Iraq, while significantly expanding the drilling program of new wells in Egypt in light of the encouraging new discoveries we have already achieved."

Dana Gas currently is implementing an integrated gas project in Iraq's Kurdistan region on a fast-track basis in a record time of just one year, in a 50:50 joint venture partnership with Crescent Petroleum, at a combined investment of $650 million. The project, which involves gas development, production, processing, and pipeline construction, is the largest private sector energy project in Iraq, and already is over 80% complete.

First gas production from the project is on target for the middle of this year, building up to a production of 300 MMcf/d by the year-end, approximately twice the company's current production in Egypt.

In the UAE, in addition to preparing for start-up for the processing and supply of imported gas, Dana Gas has signed a 25-year concession agreement for exploration and development of gas in an area of over 1,000 sq km (386 sq mi)offshore Sharjah, including development of the discovered Zora gas field. Development plans are being finalized with the tenders for offshore oilfield services soon to be awarded for fast-track implementation to produce gas in 2009.

05/27/2008