Dana Gas to Resume Drilling in Egypt

Dana Gas to Resume Drilling in Egypt

Dana Gas stated that it would resume limited drilling in Egypt after receiving $70m in back-payments from the Egyptian Government, according to The National.

Dana Gas received the equivalent of $70m in two payments, one in US dollars and one in Egyptian pounds, over the past two weeks. This amounts to 25% of its overdue receivables of $283m by the end of the first quarter.

“In the light of recent collections received from the Egyptian government, the board considered and approved that additional limited drilling activities should be carried out,” the company said in a filing on the Abu Dhabi bourse.

Moreover, Dana Gas announced during its first quarter earnings call that it was reducing spending in Egypt in line with its collections. Dana Gas’ CEO, Patrick Allman-Ward, said “This doesn’t mean we’re freezing or switching [spending] off completely, but we’re focused on only completing projects that are currently under way.”

Egypt has made payments to international oil companies in line with the IMF’s requirements for a $12b extended fund facility that helps address the country’s economic challenges.

Dr. Mahinaz El-Baz 318 Posts

Mahinaz El Baz received her PhD degree in International Economics from Helwan University in 2022. She has +10 years of experience in journalism and economic analysis. She received the "Best Economic Article Award" in 2016 from CFA Society Egypt.

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