Dana Gas receives $20M payment from Egyptian government to support operations

Updated 12/12/2024 10:07:00 AM

Arab Finance: Dana Gas, the largest private-sector natural gas company in the Middle East, has confirmed the receipt of a payment of approximately $20 million from the Egyptian government, as per a statement.

This recent transfer brings the total funds received in Egypt for the fourth quarter (Q4) of 2024 to $24.5 million.

The payment will be reinvested in the company's ongoing operations in Egypt, marking a significant step toward implementing its planned investment program.

This program is part of the Consolidation Agreement negotiated with the Egyptian government, set to be formally signed in the near future.

The agreement, ratified by the Egyptian Parliament in June 2024, is integral to Egypt’s strategy to bolster its energy sector and increase domestic gas production.

Under the terms of the agreement, Dana Gas will consolidate its existing producing concessions into a single concession with more favorable terms.

This will enhance the economic viability of future exploration and development activities.

The company's work program includes the drilling of six exploration wells and five development wells, expected to result in an 80 billion cubic feet increase in gas recovery.

In addition to improving Dana Gas’s operations, the project is expected to yield significant cost savings for Egypt’s economy, estimated at over $1 billion.

These savings will be achieved by reducing the country’s reliance on imported LNG and mazut for power generation, further enhancing the economic value of Dana Gas's assets in Egypt.