CAIRO - 10 November 2024: Dana Gas disclosed that it is waiting for a $24 million payment from the Egyptian government, which is part of its total outstanding dues of $59 million, to the Abu Dhabi Securities Exchange.
The company emphasized that securing this payment is vital to advancing its strategic development and exploration plans, including drilling 11 wells in Egypt.
According to Dana Gas, the development program entails an investment of around $100 million and is projected to enhance production rates while adding 80 billion cubic feet to the company’s gas reserves.
The company further noted that the increased gas production is expected to generate savings exceeding $1 billion for the Egyptian economy by reducing dependency on LNG imports and heavy fuel oil for electricity generation.
As of last March, the debts owed to foreign oil companies were approximately $4.5 billion.
Payments of $1.3 billion were made in June, followed by $1.2 billion in September, and $1 billion last Monday, leaving an outstanding balance of $1 billion.
Egypt’s initiatives to pay off foreign oil companies coincide with efforts to boost natural gas production, which has fallen to 4.6 billion cubic feet per day—below the daily domestic requirement of 6.2 billion cubic feet.
The IMF reported that the dues owed to foreign oil and gas exploration and extraction companies by the Egyptian General Petroleum Corporation were about $4.5 billion as of last March.
The government aims to increase natural gas production to approximately 5 billion cubic feet per day by the end of the year to better meet domestic energy needs.
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