Dana Gas, the Middle East’s largest regional natural gas company, stated that it has received an initial payment of $50m from the Egyptian government as partial payment of its outstanding receivables. Dana Gas announced the receipt of further $20m from the Egyptian government, according to Dana Gas’ Press Release.
Whilst the company is hopeful that further payments will be forthcoming, it will remain in cash preservation mode given the continued uncertainty around the timing of these collections.
This payment represents 18% of Dana Gas Egypt’s total overdue receivables of $283m as of the end of the first quarter of 2017. It was made as part of an industry payment made to the petroleum sector, Trade Arabia informed.
Dana Gas, which pumps most of its gas at fields in Egypt and Iraq, is seeking to recover payments from both countries for overdue bills. The company was owed $1b from both Egypt and the self-governed Kurdish region in northern Iraq at the end of the quarter this year, Zawaya stated.