Dana Gas could sell off its entire Egypt portfolio - ENTERPRISE

Thursday, 12 September 2019

The UAE’s Dana Gas has received offers from companies interested in buying its USD 500 mn Egypt portfolio, the company’s head of investor relations Mohammed Mubaideen told Mubasher. The company could potentially sell all of its assets in Egypt, depending on the offers it receives, Mubaideen said, adding that the deadline to receive offers is mid-November. The energy company currently produces 34k boe/d. Mubaideen said 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. He reiterated that the reason behind the company’s exit is to focus on potentially more lucrative operations in Iraq.

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.

Egypt’s arrears to foreign oil firms fall $900m - MIDDLE EAST MONITOR

July 12, 2019 at 4:04 pm

The total arrears that Egypt owed to foreign oil companies dropped to $900 million at the end of June, down from $1.2 billion a year earlier, the country’s Minister of Petroleum and Mineral Resources Tarek El-Molla told Reuters yesterday.

The minister added that Egypt would pay the remaining dues “soon, God willing”, but did not set a specific date for payment.

The monthly bill of arrears paid to foreign companies amounts to $700 million,” he said.

Arrears have fallen by 25 per cent from their level at the end of the 2017/2018 fiscal year when they stood at $1.2 billion. In June 2017, Egypt owed $2.4 billion to foreign companies, a sum which has now fallen by 62.5 per cent.

Eni, BP, Shell and Edison have dominated Egypt’s oil and gas exploration and production activities in recent years.

Foreign oil companies’ arrears had accumulated after the January 2011 uprising that ousted President Hosni Mubarak to reach $6.3 billion in the 2011/2012 fiscal year.

Dana Gas to invest USD 5 bn in Egypt in the coming few years - ENTERPRISE

Wednesday, 23 January 2019

INVESTMENT WATCH- Dana Gas to invest USD 5 bn in Egypt in the coming few years:Speaking of foreign players that have been vocal about dues owed by the government: Dana Gas is planning on increasing its investments in Egypt by USD 5 bn “over the coming few years,” CEO Patrick Allman-Ward said at a meeting with Prime Minister Moustafa Madbouly at the World Economic Forum. The investment will see the UAE-based company expand its exploration operations in Egypt, he added. The company has invested USD 2 bn in Egypt since 2007, he noted.

Paying off arrears pays off: Allman-Ward made sure to thank the Egyptian government for its efforts in paying off arrears owed to the company. This is a far cry from 2016, when Dana Gas said it was reevaluating its investments in Egypt in light of the government owing it USD 242 mn. The government slashed arrears down to USD 199 mn with a USD 35 mn payment earlier this month.

More good news for the energy sector and FDI watchers: Foreign players are expected to invest USD 10 bn FY2019-20 in oil and gas E&P, Oil Minister Tarek El Molla told local press. Dues to foreign energy companies fell to USD 1.2 bn and are expected to be completely paid by the end of this year, he said.

Gov’t puts pen to paper on strategy for Egypt’s energy hub ambitions - ENTERPRISE

Thursday, 3 January 2019

Gov’t puts pen to paper on EastMed energy hub strategy: A government committee has drafted a strategy to advance Egypt’s plan to become the premier energy hub in the Eastern Mediterranean region, according to a Cabinet statement. The strategy involves studying and benchmarking similar projects elsewhere, conducting a cost–benefit analysis, and devising short- and long-term action plans. We could also see our ports become the first to set up natural gas marine fuel stations along the eastern Mediterranean. The committee will hand its recommendation to cabinet for review.

This comes as friendlier oil and gas contracts are set to take effect this quarter: We had noted last October that the Oil Ministry is planning to roll out new production sharing contracts with friendlier terms for international oil companies. The new framework, which is set to take effect this quarter, would grant the companies a larger share of the output and allow them to sell their share of production to anyone they like. This would replace the current, more rigid system, which gives producers only one-third of output and sets the government as the only buyer of their share of production at preset prices. Taken with a push — emphasized last week by President Abdel Fattah El Sisi — for more refining capacity as well as for the repayment of arrears to E&P companies, the move could significantly improve an already bright climate for oil and gas players in Egypt.

Dana Gas receives additional $44m payment from Egypt - ARABIAN BUSINESS

Mon 31 Dec 2018 08:28 AM

Total payments from Egypt $88m in Q4 and $199m year to date

Dana Gas, UAE-based natural gas company, received an additional overdue payment of $44.3 million (AED 162.4m) from its operations in Egypt this week.

This payment is made up of an additional $35 million industry payment from the government and $9.3 million from the sale of 157,350 barrels of El Wastani condensate.

Dana Gas said it has now received two payments worth $55 million (AED 202m) in December from the Egyptian government towards overdue receivables.

The shipment of El Wastani condensate is the fifth shipment of condensate sales in 2018, resulting in total collections of $54million from condensate shipments from Egypt in 2018.

Total receipts from Egypt has reached $199 million (AED 729m) year to date compared to $164 million (AED 600m) in 2017, an increase of 21% year-on-year.

While the level of Dana Gas' receivables in Egypt are now at its lowest since 2011, it said it's hoping for further improvement in payments that will reduce the level to zero as agreed.

Foreign oil and gas companies in Egypt to increase investments to USD 11 bn - ENTERPRISE

Tuesday, 18 December 2018

Investment in Egypt by global oil majors is on track to rise c. 10% this fiscal year, unnamed industry sources told the local press. Total investment by global exploration and production companies should close the state’s 2018-19 fiscal year at c. USD 11 bn against USD 10 bn a year ago in part thanks to the Oil Ministry clearing some USD 5.1 bn in arrears it owed the companies, the story says. Major projects in the pipeline include second-phase drilling in the supergiant Zohr field, with a USD 300 mn tenth well set to be drilled next month, continued work in the North Alexandria offshore concession and the start of production from the first three wells of West Nile Delta. The Oil Ministry has recently reached an agreement with the companies to expedite their work on the latter projects. The projects are expected to produce a combined 800 mcf/d of natgas during the current fiscal year.

Egypt pays Dana Gas USD 111 mn in arrears in 9M2018 - ENTERPRISE

Thursday, 15 November 2018

Egypt paid Dana Gas USD 111 mn in arrears owed in its Financial Results For 9M & Q3 2018, the company said in its earnings release on Wednesday. 

The story comes as Egypt has been stepping up payments to international oil companies (IOCs), with arrears to oil producers have fallen to their lowest levels yet, coming in at USD 1.2 bn at the end of FY2017-18. 

The company noted that its production output in Egypt fell to 34,500 boepd in 9M2018, from 39,600 boepd in 9M2017.

The Company's 9M 2018 revenue increased 6% to $351 million (AED1,287 mm) from $330 million (AED1,210 mm) over the same period last year. Correspondingly, Q3 2018 revenue increased 6% to $115 million (AED422 mm) from $108 million (AED396 mm). The increase in revenue, driven by higher realised hydrocarbon prices, helped offset production decreases in Egypt and the UAE.

Egypt plans to pay USD 200-500 mn in arrears to oil producers by end-September. Will small players get any of it? - ENTERPRISE

Tuesday, 3 July 2018

Egypt to pay USD 200-500 mn in arrears to oil companies by the end of September: EGPC plans on paying USD 200-500 mn in arrears to oil producers by the end of September, EGPC sources say. EGPC is in talks with the government to arrange the financing, according to the sources. The Finance Ministry had reportedly agreed back in May to issue letters of assurance for two loans to the EGPC worth a combined USD 850 mn to repay IOCs. Sources had also previously said that a USD 200 mn payment would be made to IOCs in June. Egypt’s total arrears had been brought down to USD 2.1 bn as of February.

Will smaller players get any of it? Our friends in the industry noted that while the state’s backlog of payments to the industry is declining, that’s because large players including the global majors have been paid out at the expense of smaller local and regional fish.

Dana Gas receives $40m in payments from Egypt - GULF NEWS

 May 28, 2018, 16:30 

Abu Dhabi: Dana Gas on Monday announced it has received $40 million (Dh146.8 million) in payments from the Egyptian government taking the total receipts to $88.8 million (Dh325.9 million) this year.

The company said it will use the cash to proceed with growth initiatives such as drilling Balsam-8 in its development lease onshore Nile Delta to increase production.

“We are pleased to have received this $40 million payment from the Egyptian Government which takes our total receipts to nearly $90 million for the first half of the year. It is a timely cash boost and highlights the government’s publicly stated commitment to substantially reduce the petroleum companies’ receivables during 2018,” Patrick Allman-Ward, CEO of Dana Gas, said in a statement.

He added that the company’s primary focus will remain on increasing production and on drilling its first offshore well in Block 6, due to commence in early 2019.

“Block-6 is highly prospective and contains several material prospects with multi-Tcf potential,” he said.

Egypt preparing for a gas-rich future - CYPRUS MAIL

April 29, 2018
Charles Ellinas

Egypt is determined to drive and manage its rapidly expanding energy sector and ensure that the new liberalised industry and systems are run on international standards, Egypt’s Petroleum Minister Tareq El Molla has said.

Speaking at the International Gas Union (IGU) Workshop in Cairo on April 19, El Molla said his department would put Egypt at the forefront of natural gas developments.

Since the discovery of the first gas-field Abu Madi in 1967, Egypt’s gas reserves have increased dramatically, particularly during the last two to three years, with the development of giant Zohr being the game-changer.

Egypt’s oil and gas sector is being developed on the basis of three key pillars, with corresponding action areas:

• Energy security: boosting and diversifying energy supply
• Financial sustainability: by addressing historic debts and reforming energy subsidies
• Sector governance: improving oil and gas sector governance

Lessons In Attracting Upstream Investment Capital - FORBES

APR 27, 2018 @ 05:39 AM

Egypt’s astonishing gas renaissance

Not long ago, Egypt’s gas industry was in crisis. Production fell by a third in the three years to 2015; a top ten LNG exporter in the prior decade, the country had by then become a top ten importer. Nearly all available gas had to be diverted by the Government to serve the domestic market. As a result, export revenue dried up, the cost of gas imports soared and there was insufficient cash to pay contract commitments to E&P investors. Arrears ballooned to US$7 billion, and producers were becoming uneasy. Today, happily, things are very different and investment is flooding back in. What happened to turn things around? Stephen Fullerton, Upstream Research Analyst, identifies two key factors.

FDI in oil and gas sector has hit USD 10 bn so far this fiscal year; El Molla sounding the right note on payments to IOCs, but what about mid-sized players? - ENTERPRISE

Wednesday, 14 February 2018

FDI in oil and gas sector up to USD 10 bn this year: Investment by international oil companies reached USD 10 bn so far in FY2017-18, Oil Minister Tarek El Molla said in an interview with Al Borsa. This will likely increase, as the ministry plans to issue exploration tenders, including in the East Mediterranean and in the Nile Delta region sometime in 2H2017-18, said El Molla. The ministry plans to float tenders in the West Mediterranean once seismic mapping of the area is complete and a marketing strategy for the field has been developed. He added that the Red Sea and South Egypt areas will also see tenders for the very first time once geological data has been collected.

El Molla once again reassured IOCs that Egypt is committed to paying its arrears, noting that they now stand at USD 2.3 bn since the last USD 2 bn payment was made in June 2017. He noted that these were lowest levels of IOC-debt since 2013. (The question remains, though: What about small- and mid-sized players, who have seen their receivables balloon at the same time as the global majors are being paid out?)

Egypt paid $200 mln in foreign oil company arrears in Jan - finance minister - REUTERS

JANUARY 21, 2018 / 9:09 AM

Reporting by Ehab Farouk; Editing by Muralikumar Anantharaman

CAIRO, Jan 21 (Reuters) - Egypt’s Finance Minister Amr El Garhy said on Sunday the country had paid $200 million in arrears owed to foreign oil companies in January, and would pay another $550 million in February and March.

Egypt owed foreign oil companies $2.4 billion at the end of June 2017, the petroleum ministry said this week. There was no newer figure.

Cairo has pledged to eliminate arrears by the end of June 2019 and not to accumulate more, part of its drive to draw new foreign investment to an energy sector that is attracting interest following several major gas discoveries. 

Fuel subsidy spending rises 68% y-o-y in 1Q2017-18, El Molla says - ENTERPRISE

Sunday, 12 November 2017

Fuel subsidy costs rose 68% y-o-y to EGP 23.5 bn in 1Q2017-18, up from EGP 14 bn in the same quarter of the previous fiscal year, Oil Minister Tarek El Molla told reporters yesterday, Reuters reports. The minister reaffirmed that the government would not raise fuel subsidies again during this fiscal year, but said gasoline subsidies will be lifted altogether within five to ten years; some form of subsidy will remain in place for diesel fuel and gas cylinders, according to Ahram Online. The partial lifting of fuel subsidies since November 2016 has trimmed EGP 4 bn off the state’s expenditures this year, El Molla says. As we noted previously, the government is projecting that spending on fuel subsidies this fiscal year will record EGP 110 bn.

EGPC pays $6.2 billion in arrears to foreign oil firms - EGYPT TODAY

Thu, Sep. 21, 2017

CAIRO – 21 September 2017: The Egyptian General Petroleum Corporation (EGPC) paid $6.2 billion to foreign companies in arrears during the fiscal year (FY) 2016/2017, which in turn prompted companies to accelerate their activities in the oil and gas fields, EGPC Chairman Abed Ezz el-Regal said Thursday.

He added that EGPC paid a total amount of $19.3 billion and LE 38 billion (in local currency) to the companies, during the same period, to buy oil and repay loans.

IOCs raise investments in Egypt to USD 10 bn this year – El Molla - ENTERPRISE

Sunday, 17 September 2017

International oil companies have raised their investments in Egypt to USD 10 bn this year on the back of payments the government have been making to arrears it owes them, Oil Minister Tarek El Molla tells Al Borsa on Saturday. 

Arrears had fallen to USD 2.3 bn, the lowest it has been since 2013, El Molla stated. The ministry plans to issue new tenders and auctions for concessions, he added.

WoodMac podcast (7:24): Egypt’s upstream renaissance - OFFSHORE ENERGY TODAY

August 9, 2017

Over the last few years there has been a resurgence in Egypt’s upstream sector boosted by several offshore gas discoveries, most notably the Zohr.

The Zohr, made by Eni in August 2015, is the largest gas discovery ever in the Mediterranean, and the first phase of production there is set to begin late in 2017, and by the time the full development is online, it will make the country a net energy exporter.

With all the gas from discoveries made by the likes of BP and Eni, Wood Mackenzie expects the country’s gas production to rise 80-90% from the lows seen in 2016.

Foreign oil firms' Egypt investments $8.1 bln in 2016-2017 -minister - REUTERS

AUGUST 9, 2017 / 10:02 AM

CAIRO, Aug 9 (Reuters) - Investment by foreign oil firms in Egypt rose to $8.1 billion in 2016-2017 from $6.6 billion a year earlier, Petroleum Minister Tarek El-Molla told Reuters on Wednesday.

"The foreign partners spent $8.1 billion in exploration and development operations in Egypt during 2016-2017, compared to $6.6 billion in 2015-2016," El-Molla said in a phone call.

The oil ministry said in June that Egypt had reduced arrears owed to foreign oil companies to $2.3 billion. Egypt's fiscal year runs from July to June.

Cairo has pledged to eliminate the arrears by June 2019 and not accumulate more, part of its drive to draw new foreign investment to an energy sector that is attracting interest after several major gas discoveries.

Egypt reduces arrears owed to foreign oil companies to $2.3 billion - REUTERS

Thu Jun 8, 2017 | 2:30pm ISTReporting by Ehab Farouk; Writing by Amina Ismail; Editing by Toby Chopra

Egypt has reduced arrears owed to foreign oil companies to $2.3 billion, the Egyptian oil ministry said in a statement on Thursday.

The country repaid $2.2 billion in three weeks, the statement said.

Once an energy exporter, Egypt has turned into a net importer in recent years, squeezed by declining production and increasing consumption.

Dana Gas’ board of directors approves carrying out limited drilling activities in Egypt - ENTERPRISE

Tuesday, 30 May 2017

Dana Gas’ board of directors has approved carrying out limited drilling activities in Egypt. 

“In light of the recent collections received from the Egyptian government the board considered and approved that additional limited drilling activities should be carried out,” the company said in a bourse statement picked up Gulf News. 

Egypt made payments last week covering 25% of the arrears owed to Dana Gas in 1Q17. The company says it is owed USD 275 mn as of the end of 1Q17.