Egypt Pays $40m in Dues to Dana Gas

Egypt Pays $40m in Dues to Dana Gas

Dana Gas announced that it received a $40m payment as part of its outstanding receivables from Egypt. The country has paid a total of $135m in dues to Dana Gas during 2017. The current receivables balance in Egypt stands at $187m.

Dana Gas shares soared on June 7th after the company said it received another payment from the Egyptian government, reducing the arrears owed by nearly 30% so far in 2017, reported The National.

The company has been struggling because of accumulated government arrears in its two main operating areas, the Nile Delta in Egypt and the Kurdish region of Iraq, which has also raised worries about its ability to refinance a $700m sukuk that was due October 2016.

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

Additionally, Dana Gas stated that it would resume limited drilling in Egypt after receiving $70m in back-payments from the Egyptian government.

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Sarah Samir 3751 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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