UAE-based Dana Gas has announced a $100 million investment program aimed at expanding gas production in the onshore Nile Delta. This initiative reflects the company’s commitment to meeting the country’s increasing energy demands and enhancing its own long-term production capabilities.
Over the next two years, Dana Gas plans to drill 11 appraisal and exploration wells and recomplete existing ones, with an expectation to add approximately 80 billion cubic feet (bcf) of recoverable gas reserves. The program, which marks a strategic milestone for Dana Gas in Egypt, has already shown early promise with the successful completion of the Begonia-2 appraisal well in the New El-Manzala concession. Operated by Wastani Petroleum Company (WASCO), a joint venture with the Egyptian government, Begonia-2 is poised to deliver 5 million standard cubic feet daily (mmscfd) in additional output, confirming initial reserves of 9 bcf of gas.
Richard Hall, CEO of Dana Gas, expressed optimism about the initiative, stating, “This $100 million program marks a strategic milestone for Dana Gas in Egypt. The drilling success at Begonia-2 and the start of work on Balsam-3 are just the beginning. With improved fiscal terms under our new concession consolidation agreement with EGAS, we are now well-positioned to unlock more value from our Egyptian portfolio.”
In parallel, Dana Gas has commenced recompletion work on the Balsam-3 well, aiming to extract previously unproduced geological layers. This effort is expected to add 4 bcf in reserves and boost daily production by 3 mmscfd, further solidifying the company’s impact on Egypt’s gas output.
The Egyptian government, led by Minister of Petroleum and Mineral Resources Karim Badawi, has aligned its strategy to enhance natural gas production through upstream investment incentives and regional collaboration. Badawi recently visited the Begonia-2 site to observe operations, underscoring the government’s focus on energy security and infrastructure development.
Prime Minister Mostafa Madbouly has also highlighted the integration of Floating Storage Regasification Units (FSRUs) into the national gas network, positioning Egypt to meet peak summer demands and secure its energy supply. As part of this broader energy strategy, Egypt has repaid over $1 billion in overdue payments to foreign oil and gas partners, with plans to settle an additional $1.4 billion by the end of 2025.
Economist Dr. Amira Soliman commented, “Dana Gas’s investment is a testament to Egypt’s potential as a key player in the regional energy market. By addressing financial liabilities and enhancing infrastructure, Egypt is paving the way for increased foreign investment and long-term energy security.”
