Egyptian state-owned gas company Egas has taken over UAE-independent Dana Gas’ North El Arish block in the Mediterranean north of Sinai after the concession expired at the end of 2021, MEES learns. The concession, awarded at the end of 2013, had an eight-year exploration period comprising three phases, beginning with an initial four-year exploration period which was accompanied by a commitment to drill two wells, only one of which was drilled.
After the 2019 Merak well ran dry, Dana sought an affermage partner to fund the estimated $95 million cost of a second commit well, with the “huge Thuraya prospect” targeted ( MEES, June 11, 2021). Clearly not having found a taker, Dana said in its recently released first quarter results that it had requested an extension of the first phase of exploration “in the event of force majeure due to the unavailability of a platform. -form of drilling” (MEES, May 13). With global deepwater drilling activity still down from 2019 levels, this explanation did not seem convincing. (CONTINUED – 195 WORDS)
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