UAE's Dana Gas inks deals with Sharjah, Ajman to develop offshore gas field
Dubai (Platts)--22Nov2012/926 am EST/1426 GMT
The UAE's Dana Gas has signed agreements with the Sharjah and Ajman
governments to develop a gas field located about 40 km offshore in shared
territorial waters, the company said in a statement Thursday.
The agreements include a unitization plan for management of the shared
field, gas sales and purchase contracts, and a joint operating agreement that
covers drilling horizontal wells, installing an offshore platform for gas
production and processing, and constructing a 25-km undersea pipeline.
Initial production is expected in the first half of 2014, Dana said.
The Sharjah-based company, which produces oil and gas from onshore
fields in Egypt and Iraqi Kurdistan, said the new offshore gas development
was its first exploration and production project in the Gulf Cooperation
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The GCC is a coalition of Arab states in the Persian Gulf region and
comprise the UAE, Saudi Arabia, Kuwait, Qatar, Bahrain and Oman.
"The produced gas will be used mainly for power generation which will
make significant savings in fuel cost," Executive Director Rashid al-Jarwan
Sharjah and Ajman, two of the seven emirates comprising the UAE
federation, lack any significant domestic oil and gas production. They
depend largely on imported diesel and fuel oil for power generation,
supplemented by gas imported from Qatar and distributed at commercial rates
to industrial customers by an Abu Dhabi government-led consortium, Dolphin
In recent years, both Sharjah and Ajman have suffered power cuts in
summer, which analysts have linked to high fuel costs and electricity
Previously, Dana and its biggest shareholder, Sharjah-based Crescent
Petroleum, collaborated on a project intended to import Iranian gas into
Sharjah and market it to power and industrial facilities. The project failed
due to a long-running contractual dispute with National Iranian Oil Company,
which is now before an international arbitration court.
More than 90% of UAE's oil and gas output comes from Abu Dhabi.
--Rosemary Griffin, firstname.lastname@example.org
--Edited by Maurice Geller, email@example.com