Egypt Daily News – Dana Gas, a UAE-based company, has announced that it is awaiting a payment of $24 million from the Egyptian government, which is part of its total receivables of $59 million.
This payment is crucial for Dana Gas to implement a planned strategic development and exploration program that involves drilling 11 wells. According to the company’s disclosure, the overall investment in this program will amount to approximately $100 million and is expected to result in an increase in production rates and the addition of 80 billion cubic feet of gas reserves.
The additional gas production is anticipated to generate savings exceeding $1 billion for the Egyptian economy by reducing the reliance on liquefied natural gas and heavy oil imports for electricity generation.
Dana Gas has committed to reinvesting the funds being sought from the Egyptian government and is currently in discussions with the Egyptian Natural Gas Holding Company (EGAS) to resolve this financial issue.
Earlier in June, the Egyptian House of Representatives ratified a new concession agreement for Dana Gas, which consolidates its current areas of operation into a unified framework with improved terms.
In its third-quarter results, Dana Gas reported a year-on-year profit decline of 7%, totaling $40 million, but this figure was still better than analysts’ expectations.
Despite the challenges faced this year, including decreased selling prices and reduced production levels in Egypt, the company’s revenues also surpassed analysts’ estimates, even as they experienced a similar decline rate to profits. CEO Richard Hall acknowledged the difficulties the company is encountering this year.
