Dana Gas, the Middle East’s largest private sector natural gas company, has received a $50 million payment from the Egyptian government, reducing overdue receivables, according to a press release issued by the company on January 5, 2026.

This payment supports the company’s ongoing drilling program under the consolidation agreement signed with Egypt in December 2024. It optimized fiscal terms and designated additional acreage for exploration to incentivize new upstream investment in the Nile Delta and Mediterranean regions.

Since the program commenced, Dana Gas has drilled four wells that added approximately 18 million standard cubic feet per day (mmscfd) of production and a material increase in reserves, including the North El-Basant 1 discovery.

The upcoming phase of the program involves drilling seven additional wells throughout 2026. The next operation, the Daffodil exploration well, is scheduled to spud in January.

According to the press release, Dana Gas plans to deliver its 11-well investment program in 2026, which is expected to contribute over $1 billion in economic savings by replacing imported LNG and mazut with domestic production.

Richard Hall, CEO of Dana Gas, expressed appreciation for the support provided by the Ministry of Petroleum and Mineral Resources (MoPMR), the Egyptian General Petroleum Corporation (EGPC), and the Egyptian Natural Gas Holding Company (EGAS).

Furthermore, Hall emphasized that timely payments are critical to ensuring the successful delivery of the drilling program, which not only strengthens the company’s upstream position but also supports Egypt’s objective of consolidating its role as a regional energy hub.

The Consolidation Agreement signed in December 2024 between Dana Gas, EGPC, and EGAS unified the company’s existing 14 development leases into a single concession with improved fiscal terms, extending the productive life of the assets and incentivizing new upstream investment.