UAE's Dana Gas delays decision on Egypt assets sale- sources - REUTERS

APRIL 2, 2020 / 4:10 PM

DUBAI, April 1 (Reuters) - The United Arab Emirates-based energy producer Dana Gas has delayed a decision on whether to sell its Egyptian assets because of the market turmoil caused by the coronavirus outbreak, two sources close to the talks said on Thursday.

In February, Dana Gas said it had received bids from some companies for its assets in Egypt and that a final decision would be made by the end of March.

“A decision has not been reached yet, mainly due to the coronavirus global impact. However the (assets) valuation process is under way,” one of the sources told Reuters on condition of anonymity.

UAE's Dana Gas receives bids for Egyptian assets - REUTERS

FEBRUARY 12, 2020 / 8:51

DUBAI (Reuters) - United Arab Emirates-based Dana Gas (DANA.AD) said on Wednesday it has received bids from some companies for its assets in Egypt.

“We have received a number of bids from a number of companies,” the company’s CEO Patrick Allman-Ward said on an earnings call, declining to say how many bids or from which companies.

The CEO said a final decision had not been taken on whether the company will sell its Egyptian assets. He said offers would be submitted to the company’s board for review and that a decision is expected by the end of March.

Allman-Ward said the company would cover its outstanding sukuk, or Islamic bonds, of $397 million, due on Oct. 31, with the potential sale of its Egypt assets.

The company is in talks with banks to refinance the sukuk if the sale does not cover the whole amount, or if there is no sale, he said.

“We received bids for the entire package of onshore and offshore” assets in Egypt, the CEO said, adding that the bidders were given flexibility to only bid for development leases and exclude exploration deals.

Eni not interested in acquiring Dana Gas Egypt portfolio - ENTERPRISE

Tuesday, 12 November 2019

M&A WATCH- Italy’s Eni is not looking to acquire the Dana Gas’ assets in Egypt, Eni CEO Claudio Descalzi tells Bloomberg TV (watch, runtime: 7:14). 

Descalzi stressed that Eni is satisfied with its portfolio for the time being and plans to focus on developing current assets before biting off more. 

Dana Gas had received offers for buying its assets in Egypt and expects to make a decision on the sale after bidding closes by mid-November to focus its resources on its assets in Kurdistan. 

The company was looking to complete the sale in one transaction, but is also considering only a partial sale, which hinges on the offers presented.

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.

UAE’s Dana Gas hires adviser to sell Egypt assets - MIDDLE EAST MONITOR

July 28, 2019 at 11:24 am

United Arab Emirates’ Dana Gas has hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale of its Egyptian assets, worth over $500 million, two sources familiar with the matter said, as the company shifts its focus to its Kurdistan operation, Reuters reported in an exclusive on Sunday.

The Abu Dhabi-listed energy producer – whose main assets are in Egypt and in the Kurdistan Region of Iraq (KRI) – has been considering an alternative listing in London, and focusing on a single geographical area could be appealing to future investors in the company, said one of the sources. The sources did not wish to be identified because the information has not been made public.

A spokesman for Dana Gas declined to comment while TPH did not immediately respond to a request for comment, sent outside working hours.

Dana’s exploration and production assets in Egypt are onshore the Nile Delta except for Block 6 in the Eastern Mediterranean Sea.

In May Dana began drilling at the offshore Merak well in Block 6, saying it could hold up to 4 trillion cubic feet of gas.

On Sunday Dana said in a bourse filing that the drilling has not found commercial hydrocarbons and that the well is being abandoned. It added its operations in Egypt continue production normally.

Dana Gas spuds Merak-1 wildcat off Egypt - OIL & GAS JOURNAL

HOUSTON, May 22, 2019

Dana Gas PJSC, Sharjah, has spudded a deepwater wildcat on its North El Arish concession area offshore Egypt (OGJ Online, Feb. 18, 2014).

The company says the Merak-1 well is on one of three prospects it describes as “world class” in the area, also known as Block 6.

The ADVantage Drilling Services SAE Tungsten Explorer drillship is drilling the well in 755 m of water. The area is southeast of Eni’s giant Zohr natural gas discovery.

Dana Gas holds a 100% interest in the concession. It expects drilling of the Merak prospect to take 70 days.

Dana Gas receives a further $19m from Egypt - ARABIAN BUSINESS

Sun 31 Mar 2019 12:58 PM

The payment is part of the government's ongoing efforts to reduce their receivables position to zero in 2019

In 2018, Dana made good progress in reducing its outstanding balance of overdue receivables.

UAE-based natural gas company Dana Gas has received a payment of $19 million (AED 70 million) from its operations in Egypt.

The payment was made up of a $10 million payment from the government in Egyptian pounds and $9 million from the sale of a shipment of El Wastani condensate.

The payment is part of the government’s ongoing efforts to reduce their receivables position to zero in 2019.

In 2018, Dana made good progress in reducing its outstanding balance of overdue receivables. As at 31 December 2018, the net receivables position reduced by 39% to $140 million, the lowest level since 2011.

UAE’s Dana Gas to drill in what could be Egypt’s next mega gas field - GULF BUSINESS / REUTERS

Wednesday 13 February 2019

Dana Gas will begin drilling this year in an area it says could become Egypt’s next giant Mediterranean gas field, after seismic data pointed to reserves as large as 20 trillion cubic feet.

That data will be put to the test beginning in April or May, when it expects to start drilling an area that could hold 4-6 trillion cubic feet of gas, Dana Gas CEO Patrick Allman-Ward told Reuters on the sidelines of an energy forum on Tuesday.

“If the geology works out the way that we think it will, then in the success case it could be a 4-6 trillion cubic feet gas reserve,” Allman-Ward said

“And that’s just that one prospect,” he said of the area of a North Arish field located in the eastern Mediterranean Sea which is one of three Dana Gas has homed in on within its Block 6 after it was licensed to explore in 2014.

“All three together could be as much as 20 trillion cubic feet,” Allman-Ward said.

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.

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.

Dana Gas now producing 70,000 barrels of oil per day in Kurdistan - KURDISTAN 24

A gas processing plant run by Dana Gas in the Kurdistan Region

December 15, 2018

John J. Catherine

ERBIL (Kurdistan 24) – The Middle East's largest regional private sector natural gas company has announced that, as a result of a previous ramp-up of production in the Kurdistan Region, it reached 70,000 barrels of oil per day (bpd) in late November and has either sustained or exceeded that amount since then.

"Production in excess of 70,000 barrels oil equivalent per day is a great achievement for Dana Gas," said Chief Executive Officer Patrick Allman-Ward in a statement released on Thursday.

"The increase in production will help offset the lower realised hydrocarbon prices that have impacted the oil industry in the last quarter and support growth in our revenue and net profit figures for the full year 2018 and beyond."

Dana Gas is an independent gas company headquartered in Sharjah, United Arab Emirates that has been active in the Kurdistan Region of Iraq since 2007 when it entered into agreements with the Kurdistan Regional Government (KRG) to develop its substantial gas resources.

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.

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.

Dana Gas reportedly reaches settlement agreement with sukuk holders - ENTERPRISE

Sunday, 13 May 2018

The UAE’s Dana Gas appears to have reached a settlement agreement with holders of its USD 700m sukuk. “A committee representing sukuk holders, which include BlackRock Inc. and Goldman Sachs Group Inc., agreed to accept an immediate cash payout of USD 0.20 to the USD and to roll the rest into a three-year security,” sources with knowledge of the matter tell Bloomberg. The agreement would bring the Sharjah-based producer’s court case with its Islamic bond holders to an end.

Dana Gas plans $47 mln capex in Egypt this year - NASDAQ / REUTERS

March 15, 2018, 05:41:00 AM EDT
Stanley Carvalho

ABU DHABI, March 15 (Reuters) - United Arab Emirates-based energy firm Dana Gas will spend $47 million in Egypt this year but any new investments will be made only if the country pays some of the money it owes, Dana's chief executive said on Thursday.

Abu Dhabi-listed Dana has been struggling to recover payments from Egypt, with total "receivables" related to oil and gas production standing at $228 million.

The money will go towards an ongoing drilling programme in Egypt where Dana has two to four wells and where work has already begun.

But with Egypt's payments in the second half of 2017 being "sporadic and disappointing", Dana is cautious about new investments. "Absent payment, absent investments," Allman-Ward said.

Dana's production in Egypt in 2017 was around 39,500 barrels of oil equivalent per day (boepd), up 5 percent year-on-year, it said in annual results on Thursday.

Dana Gas receives USD 10.4 mn from gas sales to Egypt - ENTERPRISE

Monday, 5 March 2018

Dana Gas received USD 10.4 mn last month from the sale of Egyptian natural gas condensate as part of a plan to recover outstanding receivables, the company disclosed to the ADX. 

Dana Gas sold 157,200 bbl of El Wastani condensate at an average price of USD 66.5 per bbl. “The sale marks the fourth cargo of Egyptian condensate since the start of 2017. Last year, the Company sold three shipments for a total receipt of approximately USD 21 mn. The shipments are part of the Gas Production Enhancement Agreement signed with the Egyptian government as a mechanism to help pay down the overdue receivables.”

Dana Gas rejects bondholders’ restructuring proposal in Islamic finance row - FINANCIAL TIMES

SEPTEMBER 13, 2017

Kate Allen 

UAE-based energy company Dana Gas has rejected an offer by its creditors to restructure $700m of Islamic bonds after the company declared its sukuk “unlawful”, in a case that could have wider implications for the Islamic finance market. 

Dana Gas, which operates in Egypt and Iraqi Kurdistan, told creditors in June that it would not make payments on the debt as the bond’s structure had been deemed unlawful after changes to UAE Islamic law. 

Some Dana Gas investors formed an ad hoc negotiation committee to argue that the move was a repudiation of the English law governing the Islamic finance product. 

Dana Gas Egypt production rose by 13% in H1 2017 - ENERGY EGYPT / DANA GAS

August 16, 2017

Dana Gas Egypt’s production output was 13% higher on a half-yearly comparable basis, 39,300 versus 34,850 boepd. The Company recorded a 3% jump in quarterly production, 37,650 boepd in Q2 2017 versus 36,550 boepd in Q2 2016.

The planned shutdown of the El Wastani Gas Plant was successfully completed in June 2017. There was a complete shutdown for five days for critical inspection and maintenance and a further partial shutdown for four days. The work was conducted by Egyptian contractors and the work was concluded with no recordable incidents or environmental spills, reflecting an excellent HSSE performance. The shutdown was necessary for the Company to improve plant performance and allow it to maintain production at just under 40,000 barrels per day until the end of the year.

Dana Gas said to see creditors turn debtors as showdown deepens - THE NATIONAL / BLOOMBERG

 A Dana Gas gas facility in Egypt. Wam

August 8, 2017 06:58 PM

Gas producer says sukuk litigation may last more than 10 years

The standoff between Dana Gas and its bondholders took a fresh twist after the Middle Eastern energy explorer that’s trying to void US$700 million of its own debt was said to believe investors may even have to pay the company.

The Sharjah-based gas producer says that in one scenario the court battle with holders of the Islamic securities, or sukuk, may see it having to return less than 10 per cent of the amount it borrowed, according to a person familiar with Dana Gas’s own analysis. In a second scenario, it believes creditors may have to pay it as much as $150m, the person said, adding that the case may last more than 10 years.

Dana Gas Names Advisers for $700 Million of Islamic Debt - BLOOMBERG

4 June 2017, 11:30 a.m. EEST
Anthony Dipaola

• ‘Restructuring may be easier than others’: Arqaam analyst
• Dana Gas has $700 million in Islamic bonds due in October

Dana Gas PJSC named legal and financial advisers to assess options for about $700 million in Islamic bonds due in October, according to a person with knowledge of the situation.

Houlihan Lokey Inc. will serve as financial adviser and Squire Patton Boggs LLP will provide legal counsel, according to the person, who asked not be identified because the matter is not public. None of the companies commented.