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Dana Gas in progress with Zora gas project in United Arab Emirates

Dana reached agreement with Sharjah Emirate on Zora

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe Sharjah-based private company Dana Gas (Dana) managed to reach an agreement with the authorities of the Sharjah and Ajman Emirates in the United Arab Emirates (UAE) regarding the offshore development of the Zora gas  field in the Sharjah Western Offshore concession.

In 2008, Dana was awarded by Sharjah Emirate a 25 years concession agreement to complete the exploration and develop a block of 1,000 square kilometers offshore the west coast of the Emirate.

Dana-Gas-Zora-Gas-Project_Sharjah-Western-Offshore_MapThis Sharjah Western Offshore concession was defined around the successful discovery of the Zora gas field in 1979.

Unfortunately in the meantime, Dana met serious financial difficulties because of unpaid bills of gas exports to Egypt and fuels supplies to the Kurdistan Province of Iraq.

The outstanding receivables ballooned in 2011 and 2012, preventing Dana to develop Zora according to plans.

In first half 2012, the Sharjah authorities were threatening Dana to cancel the Sharjah Western Offshore concession since Dana had failed to start any development.

But on the last months Dana managed to make significant progress in collecting the pending debts and restoring its financial situation.

From this progress on the balance sheet and the on going discussion to resolve the remaining overdue payments Dana and the Authorities of Sharjah Emirates agreed to move forward on the development of the Zora gas field.

WorleyParsons to provide Dana with Zora consultancy

In a context where the United Arab Emirates are running short of gas to supply their domestic needs for power generation and feed its flourishing petrochemical industry, the development of the Zora gas field arose high expectations from the authorities.

In becoming the operator of this Sharjah Western Offshore Concession, Dana committed to resume the exploratory campaign of the Zora gas field and to complete the drilling of two horizontal production wells.

Dana-Gas_Zora_Gas_Sharjah_ProjectLocated 33 kilometers from the shore, the development of the Zora gas field requires:

 – Offshore wellhead platforms

 – Export pipelines to the shore

 – Onshore gas processing facilities.

From the front end engineering and design (FEED) work, the Zora gas project is sized to deliver 60 million cubic feet per day (cf/d) before further development of the Sharjah Western Offshore concession.

In 2011, Dana released the call for tender of the three packages.

In 2012, WorleyParsons, acting as Dana project manager consultancy (PMC) services provider, proceeded to the evaluation of the technical and commercial offers.

In respect with the last progress on the payment side, Dana and WorleyParsons expect to award the $125 million capital expenditure packages in second half 2013 for a production on early 2015.

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