Dana Gas the Middle East’s first and largest regional and private-sector natural gas company has signed a set of agreements with the Sharjah and Ajman Governments to jointly develop the shared field located around 40 kilometers off the two coasts.
These included a unitization agreement for management of the shared field, gas sales and purchase agreements, and the joint operating agreement.
The agreements were signed by HE Sheikh Sultan bin Ahmed Al Qasimi, Deputy Chairman of Petroleum Council Signed on behalf of Government of Sharjah, and HE Sheikh Ahmed bin Humaid Al Nuaimi The representative of the Ruler of Ajman for Financial and Administrative Affairs on behalf of the Government of Ajman, and Mr. Rashid Saif Al-Jarwan, Executive Director and Acting CEO of Dana Gas.
The agreements cover the development of the gas field discovered in the area by drilling horizontal wells and installation of offshore platform for process of gas production via offshore pipeline of 25 km. Initial gas production from the field is planned for the first half of 2014.
On this occasion Dana Gas Executive Director Rashid Al-Jarwan said:
“Dana Gas is proud to play the positive role in developing the gas field, marking the first exploration and production project for the company in the UAE and GCC region. The produced gas will be used mainly for power generation which will make significant savings in fuel cost. We look forward to a long and fruitful partnership with the Governments of Sharjah and Ajman.”
Dana Gas has been expanding in all areas of the natural gas industry across the Middle East and North Africa Region, including the upstream exploration and production for natural gas, such as in Egypt where the Company is the 6th largest gas producer, and recently announced commencement of production from its joint-venture, the Egyptian Bahrain Gas Derivatives Company (“EBGDCo”) NGL extraction plant region at Ras Shukheir, first of its kind in the Gulf of Suez region. In Kurdistan Region of Iraq the Company completed its 4th year of production, which reached up to 80,000 barrels of oil equivalent per day.