Today's Edition
ABU DHABI (ALETIHAD)
Dana Gas has received a payment of $50 million (Dh184 million) from the Egyptian government, reducing overdue receivables and supporting its ongoing investment programme in the country, the company said on Monday.
The payment supports Dana Gas’s drilling programme being carried out under the Consolidation Agreement with the Egyptian government, which was formally signed in December 2024. The agreement consolidated the company’s concessions in Egypt, provided improved fiscal terms to support new upstream investment and included additional acreage designated for exploration drilling.
Dana Gas said it has so far drilled four wells under the programme, including the recent North El-Basant 1 discovery, which is estimated to hold 15 billion cubic feet of recoverable gas. These wells have added about 18 million standard cubic feet per day of production. The company plans to drill a further seven wells in 2026, with the next well, Daffodil, expected to spud in January.
In parallel, the company has completed a workover programme across three wells, adding a further 9 million standard cubic feet per day of production. Dana Gas said further assessments are under way to identify additional workover candidates for 2026.
Commenting on the development, Richard Hall, Chief Executive Officer of Dana Gas, said the latest payment would help fund the company’s investment programme in Egypt and highlighted the importance of timely payments to ensure the successful delivery of drilling activities.
“Thanks to the robust support provided by the Egyptian government, our investment programme is already yielding positive outcomes. We have successfully brought new gas production online, and additional wells are scheduled to follow. The programme not only enhances Dana Gas’s upstream position in Egypt, it also contributes directly to the national economy by supporting domestic gas supply and reducing the need for imports. With the right support in place, we’re well-positioned to deliver the next phases of the programme and continue strengthening Egypt’s role as a regional gas hub,”
The company plans to deliver an 11-well investment programme in 2026, which it said is expected to generate more than $1 billion in economic savings by displacing imported liquefied natural gas and mazut with domestic production.
Dana Gas is the Middle East's first and largest regional private sector natural gas company established in December 2005 with a public listing on the Abu Dhabi Securities Exchange (ADX). It has exploration and production assets in Egypt, Kurdistan Region of Iraq (KRI) and the UAE.
