Dana Gas is not going through with plans to sell off concessions to explore for natural gas in Egypt's Nile Delta region, the company said in a statement today.
The Middle East's largest private gas company is chosing to retain its 100 per cent stake partly because of a 20 per cent boost in reserves in 2010, largely from seven new field discoveries.
Last year the Sharjah-based firm said it could decrease its concessions in the Nile Delta by as much as 30 per cent.
The company plans to grow processing capacity to handle the additional Egyptian output, which last year the firm estimated at 42,000 barrels of oil equivalent per day.
Dana Gas revised its plans to build a gas processing plant east of the Nile River, increasing planned capacity from 50 million standard cubic feet per day to 120 million.
Mr Ahmed Al Arbeed, Dana Gas CEO, said "Our ongoing excellent exploration performance, with 16 discoveries in the Nile Delta over the past three years, combined with our year on year production increase of 20 per cent reinforces our view of the remaining potential of this first class acreage and thus confirms to us that retention of our 100 per cent interest will deliver the maximum value to our shareholders.
"Our production continues to increase, with current production in the Nile Delta at 246 mmscfpd of gas plus 7350 barrels per day of condensate and LPG, a total of 48,000 barrels of oil equivalent per day. We are targeting similar annual increases in production during 2011 and 2012.
"Our team in Upper Egypt continues to work hard to enhance production from the Al Baraka Field with further development drilling planned in 2011, alongside our exploration programme to test the vast potential of the Komombo Concession."