Dana Gas sells onshore Egyptian assets for $236m

CAIRO, Oct 27 (Arab News): Dana Gas PJSC has entered into a binding agreement with IPR Wastani Petroleum Ltd. for the sale of its onshore Egyptian oil and gas assets for up to $236 million, including contingent payments.

As part of the transaction, Dana Gas is selling its full operative shares in its four onshore concession areas of El Manzala, West El Manzala, West El Qantara and North El Salhiya, and their associated development licenses.

The production rate in the four concession areas amounted to 30,950 barrels of oil equivalent per day in the first half of 2020. It contributed $38 million before interests, taxes, consumption, and depletion to the company's profits during the same period. Transfer of ownership, responsibilities and staff will take place upon finalization and formal approval of deeds.

The UAE company, through its wholly owned subsidiary Dana Gas Egypt, will retain its interests in its onshore exploration concession in El Matariya and offshore exploration concession in North El Arish.

CNBC reported that Dana Gas UAE will actively attempt to maximize the value of these remaining assets.