Egypt Operations

Overview

Dana Gas Egypt (DGE) has been operating in Egypt since 2007, where it has focused on developing and providing natural gas and gas liquids, including condensate and liquified petroleum gas (LPG). Since entering Egypt, DGE has become the nation’s fifth largest gas producer.

Over the years, the Company has invested over US$2 billion in Egypt and created over US$10 billion in value for the Egyptian economy. This value was generated not only through gas condensates and LPG sales, but also through the broader economic impact of direct and indirect job creation.

In December 2024, Dana Gas signed a new Concession Agreement with the Egyptian Natural Gas Holding Company (EGAS) to consolidate 13 development leases under the El Manzala, West El Manzala, and West El Qantara concessions into a single concession named New El Manzala, held with 100% working interest. The consolidated area spans 387.1 square kilometres in the onshore Nile Delta. An additional 297.4 square kilometres of surrounding exploration acreage was also awarded under the agreement, expanding future development potential.

This agreement, approved in alignment with the Ministry of Petroleum and Mineral Resources’ efforts to stimulate domestic gas production, introduced more favourable fiscal terms and enhanced gas pricing. These improved terms enable reinvestment and long-term value creation, both for Dana Gas and the wider Egyptian energy sector.

Gas production icon
Gas production
80
mmscfpd
Condensate production icon
Condensate
1,554
bblpd
LPG production icon
LPG production
132
MTD
Net production icon
Production
16,450
kboepd

Reserves

As of 31 December 2024, Dana Gas Egypt’s 2P reserves stood at 22.1 million barrels of oil equivalent (MMboe), according to an independent audit, down from 33.8 MMboe at the end of 2023. The decline reflects the lack of recent activity and a downward revision of 5.7 MMboe based on the most recent estimates of ultimate recovery. Production in 2024 of 6.0 MMboe was not replaced.

Company’s Assets

Dana Gas currently focuses its exploration, development and production activities in the onshore area of the Nile Delta.

DGE’s operations began in 2007 with the acquisition of Centurion Corporation, which operated two onshore concessions. Over time, Dana Gas was awarded two additional concessions and successfully expanded its exploration activities. Today, DGE holds the consolidated New El Manzala concession, comprising three former producing concessions and supplemental exploration acreage.

Production is currently sourced from approximately 30 wells, connected to an extensive 600 km pipeline network which transports all output to the El Wastani gas plant for processing and separation of dry gas, condensate and LPG. All operations are managed and operated by a requisite joint venture between Dana Gas and the Egyptian Natural Gas Holding Company (EGAS), named El Wastani Petroleum Company (WASCO).

El Wastani Gas Plant

The plant was originally commissioned in March 2002 as an early production facility. Following several expansions, its capacity reached 150 mmscfpd at the time of acquisition by Dana Gas Egypt. Subsequent debottlenecking further increased nominal capacity to 200 MMscf/d, with the plant recording peak throughput of 270 MMscfpd in May 2011.

The gas processing plant is equipped to separate wet gas into dry gas, liquid condensate and LPG. The processed products are sold and delivered to the local market. In 2024, the facility maintained excellent uptime, achieving 99.9% reliability.

Production

In 2024, Dana Gas Egypt produced an average of 16,456 boepd, a 25% year-on-year decline due to natural field declines. This production consisted of average daily production of 80 MMscf of gas, 1,554 bbl of condensate and 132 tonnes of LPG.

Although the Company managed to slow decline rates in previous years, the recent dip reflects maturing fields. However, with the new Concession Agreement in place, production is expected to be stabilised and reversed in the medium term.

Concession Consolidation Agreement

Under the terms of the Consolidation Agreement, Dana Gas has committed to a multi-year investment programme targeting reserve additions and long-term production. The US$100 million programme will see the drilling of six exploration wells and five development wells over the next two years. The work programme is expected to increase ultimate gas recovery by 80 billion cubic feet, enhance asset value, and extend the life of Dana Gas’s Egypt portfolio.

In 2025, the Company began drilling the first Begonia-2 appraisal well located in the Dakahlia Governorate. This was the first well in the Begonia development area and targeted gas reserves in the Abu Madi formation. Initial estimates indicated a reservoir volume of up to nine billion cubic feet of gas. The investment programme aims to support Egypt’s national energy goals by displacing costlier imported LNG and mazut, potentially saving the country over US$1 billion.

The investment programme is expected to be internally funded and cash generative.

Operations Egypt

Overview

Dana Gas has operated in Egypt since 2007 through its subsidiary, Dana Gas Egypt (DGE), focusing on exploration, developing and processing of natural gas. Since entering Egypt, Dana Gas has become the nation’s fifth largest gas producer. DGE holds 4 Concessions with 14 Development Leases onshore at the Nile Delta, all operated and with 100% working interest. As of the beginning of 2022, the company is negotiation with EGAS to consolidate its existing Concessions into one new Concession with new economic terms in order to allow for a comprehensive Late Life Investment Program. Dana Gas also has a partial interest in The Egyptian Bahrain Gas Derivatives Company (EBGDCo), an LPG recovery plant in the Gulf of Suez with annual capacity of 130,000 tons. Dana Gas sold its interest in EBDGCo in 2021. Beside the additional investments in the existing areas, DGE also seeks new opportunities in Egypt to further grow it’s reserves base.
Gas production icon
Gas production
162
mmscfpd
Condensate production icon
Condensate
4,982
bblpd
LPG production icon
LPG production
221
MTD
Net production icon
Production
34.5
kboepd

Reserves

Based on the independent reserves audit report, The Company’s Egyptian 2P reserves as of 31 December 2021 stood at 43.50 MMboe, compared to 58.62 MMboe at year end 2020. Reserves decrease because production was not replaced through exploration drilling activity coupled with unfavourable economics related to the El Manzala Concession.
Reserves

Onshore assets

In the moment, Dana Gas focuses its exploration, development and production activities mainly in the onshore area of the Nile Delta.

Nile Delta operations

DGE’s operations in the Nile Delta commenced in 2007 when it purchased the assets of Centurion Corporation, which operated two onshore concessions. Over the years, DGE was awarded two more concessions and has very successfully progressed exploration activities which led to a substantial number of discoveries and a significant increase in company reserves. The company currently holds four onshore concessions: El Manzala, West El Manzala, West El Qantara and North El Sahiya, covering a total area of 796 square kilometres. Production currently comes from approx. 30 wells, connected via an extensive, 600 km pipeline network which brings all production to the El Wastani gas plant for further processing and separation of dry gas, condensate and LPG. DGE’s operations in the Nile Delta commenced in 2007 when it purchased the assets of Centurion Corporation, which operated two onshore concessions. Over the years, DGE was awarded two more concessions and has very successfully progressed exploration activities which led to a substantial number of discoveries and a significant increase in company reserves. The company currently holds four onshore concessions: El Manzala, West El Manzala, West El Qantara and North El Sahiya, covering a total area of 796 square kilometres. Production currently comes from approx. 30 wells, connected via an extensive, 600 km pipeline network which brings all production to the El Wastani gas plant for further processing and separation of dry gas, condensate and LPG.

El Wastani Gas plant

The El Wastani Gas Processing Plant is located in the Nile Delta near Damietta and is managed and operated by a joint venture between Dana Gas and EGAS with the name El Wastani Petroleum Company (WASCO)]. The plant was commissioned in December 2006, initially as an early production facility, but then expanded to accommodate the increasing production potential of the area to an actual capacity of 200 MMSCFD. The gas processing plant is equipped to separate wet gas into dry gas, liquid condensate and LPG. The processed products are sold and delivered to the local market. Since the end of 2021, Dana Gas has engaged in negotiations with EGAS to consolidate its existing 4 concessions into a new concession with improved terms which would allow further investments to be made, a win-win for both parties, Dana Gas as well as for EGAS. The negotiations were successfully concluded during 2022 and the EGAS Board approved the consolidation terms in early December 2022. The new terms still need to be approved by the Egyptian parliament which is expected later in 2023. The revised terms significantly improve the economics of any future exploration and development activities. In exchange for the improved terms, Dana Gas has identified a number of development and exploration activities, which under the proposed new terms will become economic and add production and reserves thus further extending the life of the assets. These activities include drilling 3 exploration wells within newly awarded acreage and 8 infield exploration/development wells during 2023/2024.

Why invest in
Dana Gas

MENA's largest independently listed, natural gas-focused E&P Company

Production icon
Gross Production
55 kboepd
2P reserves icon
2P Reserves
1,110 mmboe
Gas Production icon
Average Daily Gas Production
253 mmscf
Condensate Production icon
Average Daily Condensate Production
6,800 bbl