Project Profile
Value: Undisclosed
Location: Nile delta, Egypt
Reserves: Unknown
Area: 960 km²
Depth: Unknown
Start-up Year: -
Dana Gas Egypt, a unit of Dana Gas, has been awarded the El Matariya (Block 3) onshore concession in the Nile delta as part of the 2014 EGAS bidding round held recently in Egypt. Dana Gas Egypt will participate in the Block 3 concession area on a 50% basis with BP as partner and operator. Under the terms of the agreement, BP will fund all of the cost (including Dana Gas’s share) of one exploration well up to an agreed maximum limit. In the event that the well proves commercial, BP has the option to back into 50% of the deep potential of Dana Gas’ adjacent development leases.
The block is located adjacent to the company’s existing development leases. Together with BP, the company will look to explore the multi-TCF gas potential of the Oligocene reservoirs that have proven successful to date in the offshore and which extend into Dana Gas Egypt’s existing development licenses. The first Oligocene exploration well is scheduled to be drilled in 2016. The block has a 6 year exploration period, comprised of two phases of 3 years. A 20-year development lease period will be granted to the block, based on approved commercial discovery. The concession, which covers 960 km², was awarded as part of the EGAS international bid round in August 2014. Ratification of the new concession is expected to take place following the completion of the necessary approvals.
Operators:
BP: Operator with 50% interest
Dana Gas Egypt: 50% interest
Contractors:
Subcontractors: