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Dana Gas secures $100m financing for Zora offshore gas field

Dana Gas has secured $100m of financing to develop the Zora offshore gas field in the northern part of the UAE.


To be built in the waters off Sharjah and Ajman, the gas field will feature a tilted fault block structure with a closure of about 25km2.


The gas field is located in the Shrajah Western Offshore Concession block off the coast of the Sharjah coastline at a water depth of 24m.


Upon completion, the gas field is expected to produce 40 million standard cubic feet per day, with first delivery expected in the first-half of 2015.


Dana Gas raised the financing via a credit facility maturing in November 2018, with Emirates Bank NBD Capital leading a syndicate of regional banks to provide the loan.


The repayment for the financing is over a period of 15 quarterly investments and will start in the second-half of 2015 after completion of the project, subject to a cash sweep mechanism.


Dana Gas has to date invested about $49m as part of the project's equity financing.


Dana Gas chief executive officer Patrick Allman-Ward said: "This financing agreement demonstrates the confidence leading banks and financers have towards the Zora project.


"The project work is proceeding as per plan and we remain committed towards bringing the project on-stream in the first-half of 2015.


"Natural gas produced from the field will provide a much needed source of clean energy for the benefit of the Northern Emirates of the UAE."


Dana Gas signed a series of agreements with the Sharjah and Ajman governments in March 2008 to jointly develop the Zora field.


The field was planned to be brought on stream between 2009 and 2010 but the project progressed at a sluggish pace due to delays in approvals.


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