Abu Dhabi – Mubasher: Dana Gas has received nearly $20 million in payment from the Egyptian Government, bringing the total funds to $24.50 million during the fourth quarter (Q4) of 2024.
This payment, which will be reinvested in the ADX-listed company’s existing operations across the Arab Republic, will allow it to proceed with its planned investment programme, according to a press release.
Furthermore, the agreement is part of the government’s strategic initiative to back Egypt’s energy sector and increase domestic gas production.
The work programme, which includes six exploration and five development wells, is expected to increase ultimate gas recovery by 80 billion cubic feet and raise the value of Dana Gas Egypt assets.
This initiative will extend the life of Dana Gas’s assets in the country and yield cost savings of over $1 billion for Egypt’s economy by reducing reliance on imported LNG and mazut for power generation.
Richard Hall, CEO of Dana Gas, commented: “This payment, which will be reinvested in Egypt, will increase domestic gas supply, create substantial economic value, and deliver cost savings for the nation. We are now focused on starting the work program that will enhance production and reserves.”
“The latest payment from the Egyptian government further reduces the company’s receivables and enhances its liquidity position. The improved liquidity will allow the company to consider the resumption of sustainable dividend payments to our shareholders,” Hall added.
The company’s financial performance in 2024 declined amid a challenging environment of lower realised prices as well as a production decline in Egypt.
