Dana Gas gains UAE offshore gas block

by on November 22, 2012 9:35 am BST

The Sharjah-based company signed deals with the governments of
both emirates to develop the field by drilling horizontal wells and installing
an offshore processing platform and a 25-kilometre pipeline.

Initial gas production from the field, which is situated 40 kilometres off both coasts, is planned for the
first half of 2014, Dana Gas said, with gas sales and purchase agreements also
signed to use the output for domestic power generation. 

The natural gas company is Egypt’s sixth largest gas producer,
and produces 80,000 barrels of oil equivalent per day in Iraqi Kurdistan.

Dana Gas revealed earlier this month it had been forced to
restructure a $1 billion Islamic bond or sukuk after it failed to meet payment
on maturity. The company has paid $80 million to its creditors and split the
sukuk into two new bonds after the missed payment, which it blamed on short-term
liquidity issues.