Dana Gas to halve spending, cut workforce in 2016

Published January 13th, 2016 - 01:00 GMT

Dana Gas, the Sharjah-based natural gas company, is seeking to reduce its overall general and administrative spend from last year to this year by 50%.

According to the company's chief executive officer, Patrick Allman-Ward, Dana Gas is also looking at cutting 40% of its head office jobs (translating to 20 people). Job cuts took place over the course of 2015 and will continue over early 2016.

"We've gone through an exercise once again of looking at our head office overheads, and we've taken action to cut those costs by 50%. We continue to look at our on-going operating costs and operating ventures whether (they're) in Egypt or Kurdistan to look at ways to cut out unnecessary costs from those operations," he said.

Allman-Ward was speaking to reporters on Tuesday on the sidelines of the Middle East Gas Conference 2016 in Abu Dhabi. Discussing operations in Egypt, the CEO said that Dana Gas's Balsam-1 and Balsam-2 gas wells in Egypt have already come on stream, with a total production capacity of 24 million standard cubic feet (scf).

The Balsam-1 field came on stream in November producing 10 million scf, while the Balsam-2, which came on stream in December, produces 14 million scf.

In November 2015, Dana Gas reported a net loss of $9 million in the third quarter of the year compared to $38 million in net profits in Q3 2014. The loss came on the back of overproduction that is also being met with weaker demand.

 

 


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