Dana Gas to invest $43 million in drilling new wells in Egypt

Ahram Online , Wednesday 29 Nov 2023

Emirati energy company Dana Gas announced plans to invest an additional $43 million in its operations in the Egyptian market over the coming year, according to CEO Richard Hall on Wednesday.

A photo showing Egypt s Minister of Petroleum and Mineral Resources Tarek El-Molla during a meeting
A photo showing Egypt s Minister of Petroleum and Mineral Resources Tarek El-Molla during a meeting with Richard Hall, CEO of Dana Gas.




Hall’s remarks came during a meeting with Egypt’s Minister of Petroleum and Mineral Resources Tarek El-Molla to explore avenues for enhancing bilateral relations, according to a statement by the ministry.

Hall emphasized that the proposed investment is a part of Dana Gas' comprehensive plan to implement an intensive drilling programme in its Egyptian concessions through 2024.

The company aims to drill 11 development wells and three exploratory wells to increase daily gas production by 30 million cubic feet, Hall added.

“This step aims to counter the natural decline of existing wells and propel the company towards sustained growth,” Hall explained.

Hall underlined Dana Gas' steadfast commitment to expanding operations in the Egyptian market, injecting additional investments, and fostering stronger bilateral relations.

On his part, El-Molla emphasized the potential in Egypt’s oil and gas sectors.

He explained that Egypt's robust infrastructure, exceptional skills and expertise, coupled with its pivotal geographical location, positions the country as a regional hub for natural gas.

He highlighted “Egypt's capability to import gas from neighbouring countries and re-export it from Egyptian liquefaction plants to global markets, particularly Europe.”

This recent commitment from Dana Gas follows Emirati Minister of Investment Mohammed Al-Suwaidy's announcement in November that the UAE intends to channel new investments into Egypt across various sectors.

Egypt has been actively seeking foreign investments, with a particular emphasis on attracting capital from Gulf nations to assist in its economic recovery and fulfill its obligations to the International Monetary Fund (IMF) under the $3 billion loan agreement signed last year.

To entice Gulf investment, Egypt has implemented a strategy of offering state-owned assets through the government's IPO programme.

President Abdel-Fattah El-Sisi's visit to the UAE in September was instrumental in discussing ways to strengthen bilateral economic cooperation between the two countries.

These efforts have yielded positive results, with trade volume between Egypt and the UAE reaching $4.6 billion in the first 11 months of 2022, reflecting a 6.5 percent growth compared to the corresponding period in 2021.


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