The London Court of Arbitration (LCIA) has ruled in favor of Dana Gas against IPR Wastani Petroleum’s arbitration on IPR’s Sale and Purchase Agreement (SPA) for the oil and gas assets in Egypt, a statement reported.
The LCIA ruled in Dana Gas’ favor on all key points, concluding that Dana Gas’ termination of the SPA was valid. Thus, the assets will continue to be operated by Dana Gas.
Dana Gas terminated its SPA agreement with IPR Wastani on April 22, 2021, due to the parties’ inability to fulfill a number of transaction-related conditions precedent by the long-stop date of April 14 2021.
IPR Wastani disputed Dana Gas’ right to terminate the SPA and filed a request for arbitration.
Commenting on the ruling, Patrick Allman-Ward, CEO of Dana Gas, stated: “We are very pleased with the outcome of this arbitration and with the speed with which this final decision was made. The award confirms that Dana Gas was correct and within its contractual rights to terminate the sale’s process. The Board has made a decision to continue to hold and operate the assets in the best interests of the Company and its shareholders as well as for our broader stakeholders. We are committed to continuing to operate our onshore assets to the highest operational and safety standards. We are also excited about the potential of our offshore Block 6 Concession Area and we are working hard to be able to drill an exploration well in the block as soon as practicably possible.”
Dana Gas Egypt collected $23 million in the Q1 of 2021, which increased to $75 million in the Q2 following the termination of the SPA. In total, Dana Gas Egypt has collected $98 million during the H1 of 2021, compared to $43 million received in the same period of 2020, signifying a 128% increase.