The acquisition of the exploration and production company fits with Dana’s strategy to expand into the upstream sector. Calgary-based Centurion is listed on the Toronto Stock Exchange and London’s Alternative Investment Market and has exploration interests in Egypt and Tunisia as well as West Africa. It produces about 32,000 barrels of oil equivalent a day (boe/d), which it aims to increase to 38,000 boe/d by the end of 2006.

The purchase gives Dana its second project in Egypt following its acquisition in October of a two-thirds stake in a new joint venture company, Danagaz (Bahrain), set up to build a liquefied petroleum gas (LPG) plant in Egypt. The plant will produce 120,000 tonnes a year (t/y) of LPG 110,000 t/y of propane and 10,000 t/y of butane and is expected to be operational by late 2008 (MEED 6:10:06). Centurion is also building its own LPG plant.

In 2005, Dana Gas staged an initial public offering which raised about $550 million and was heavily oversubscribed. However, its share price slumped after Tehran cast doubt on a gas supply agreement with Dana Gas and one of its parent companies, Sharjah-based Crescent Petroleum Company (MEED 3:3:06).