Major Gas Discovery by Dana Gas in Egypt
Introduction to Dana Gas
Dana Gas, recognized as the largest private natural gas company in the Middle East, has recently made headlines with a considerable gas discovery. The company’s latest achievement comes from the successful drilling of the North El-Basant 1 exploratory well, located in Egypt’s onshore Nile Delta.
Initial Well Results
In a recent regulatory announcement submitted to the Abu Dhabi Securities Exchange (ADX), Dana Gas revealed promising initial results from this drilling endeavor. Estimates suggest that the well holds between 15 to 25 billion cubic feet (bcf) of natural gas. Once connected to the national pipeline network, production is anticipated to exceed 8 million cubic feet per day (mmscfd).
Expanding Operations in Egypt
This discovery marks a significant milestone as it is the fourth well drilled under a contract for a total of 11 development and exploration wells. This project is part of Dana Gas’s commitment, backed by a $100 million investment aimed at bolstering Egypt’s domestic gas production. The overarching goal is to increase reserves and satisfy the escalating demand for energy within the country.
Insights from Leadership
Richard Hall, the CEO of Dana Gas, expressed optimism regarding this new drilling success. He stated, “The latest drilling success reinforces the value of our investment programme in Egypt and highlights the significant remaining potential within the Nile Delta.” Hall emphasized how the North El-Basant-6 results build on the successes of earlier wells, directly contributing to the increased domestic gas supply and reserves.
Economic Impact
The initiative is expected to significantly reduce Egypt’s dependence on imported liquefied natural gas (LNG) and fuel oil. Hall noted the program’s potential economic benefits, projecting that it could result in over $1 billion in savings for the Egyptian economy over time. This report underscores the importance of developing local resources to meet energy needs more sustainably.
Collaboration with EGAS
Dana Gas has established a pivotal partnership with the Egyptian National Gas Holding Company (EGAS), allowing the company to secure additional exploration acreage under favorable fiscal conditions. Hall voiced appreciation for the cooperation received from EGAS and the Ministry of Petroleum, which has facilitated this renewed phase of drilling activity. Dana Gas is dedicated to completing a substantial portion of its planned activities in the coming year.
Recent Drilling Achievements
Earlier this year, Dana Gas completed drilling three additional wells, which collectively added 10 mmscfd to its production capacity. The company’s strategic aspirations include increasing long-term output and potentially adding around 80 bcf in recoverable gas reserves.
Future Endeavors
In line with its ongoing exploration efforts, Dana Gas is set to begin drilling its fifth well, named the Daffodil exploration well, in the first week of January 2026. This milestone is part of a broader agenda to enhance natural gas output and ensure a reliable supply of energy to meet local demands.
Conclusion
The latest developments in Dana Gas’s exploration efforts underscore the company’s commitment to enhancing Egypt’s energy landscape. With significant discoveries and planned drilling activities on the horizon, Dana Gas continues to play a crucial role in the region’s natural gas production and economic health.
