Dana Gas considers multiple scenarios for sale of Egypt assets, will decide in November
Dana Gas considers multiple scenarios for sale of Egypt assets, will decide in November: Dana Gas is considering offloading remaining arrears owed to it by the Egyptian state on to whoever ends up buying its Egyptian assets, CEO Patrick Allman-Ward told the UAE’s Al-Ittihad newspaper on Wednesday. Speaking on the sidelines of the World Energy Congress in Abu Dhabi, Allman-Ward also confirmed that the company is receiving offers from companies interested in buying its assets in Egypt and expects to make a decision on the sale after bidding closes by mid-November. Allman-Ward reportedly said that the company was looking to complete the sale in one transaction, but is also considering only a partial sale, according to the National. Which course of action the company takes will depend on the offers presented, he added. Allman-Ward reaffirmed the reason behind the exit (or partial exit) was to focus its resources on its assets in Kurdistan.
What could be up for grabs? The company has 14 development leases under three concessions in the Nile Delta region and a 26.4% stake in a gas liquids extraction plant in the Gulf of Suez. Last week, the company’s head of investor relations Mohammed Mubaideen said that the company’s Egyptian assets were producing at a rate of 34k bbl/d. He added that the Egyptian government has repaid the company USD 81 mn during the first half of the year and brought its arrears down to USD 117 mn.
Background: The Emirati company said in July it had hired financial advisors to study the possibility of selling down its Egypt asset portfolio. Unnamed sources told Reuters that the company hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale. The company had previously said it would abandon its Merak-1 well in the North Arish concession after failing to find commercial hydrocarbons, but that it plans to invest in drilling in the El Matareya concession in the Nile Delta.