Dana expands in Egypt with Nile Delta venture
OIL and gas explorer Dana Petroleum has agreed to acquire a 50 per cent stake in a potential oil field off the coast of Egypt from rival BG Group, boosting its prospects in Africa.
The Aberdeen-based firm said yesterday it has agreed to fund the cost of the next exploration well in the Nile Delta, which is planned for early 2011, up to an agreed cap.
“This further extends Dana’s strategic position and growth opportunities across Egypt, where we are already 50/50 partners with GDF Suez in the western area of the Nile Delta,” said Dana chief executive Tom Cross.
Dana is still in takeover talks with Korea National Oil Corporation (KNOC), after receiving a preliminary approach from the South Korean state-run company at the start of July.
The FTSE 250-listed company has made two gas discoveries off the coast of Egypt but its Bamboo well disappointed the market in June when it failed to find oil.