Dana Gas PJSC, a natural gas company based in the United Arab Emirates, agreed to sell its oil and gas fields in Egypt for as much as $236 million. This sale will enable the firm to repay a portion of the debt owed from its Islamic bonds that will mature later this month.
The company is expected to receive up to $153 million in cash, in addition to $83 million in contingent payments stemming from the sale of the IPR Energy Group, as explained in an official statement. Dana Gas is also expected to receive an undisclosed lump sum due to the impact that the coronavirus pandemic had on the company in the third quarter.
Chief Executive Officer Patrick Allman-Ward explained in a statement that by completing the Egypt deal, Dana Gas PJSC will free up the resources required to focus on expanding its operations in the Kurdish region of northern Iraq. Iraq is also expected to become the company’s main area of operation.
IPR Energy’s unit IPR Wastani Petroleum Ltd. is expected to purchase all of Dana Gas PJSC’s Egyptian gas and oil blocks. The company also revealed that it had received four offers in total for the assets. However, the coronavirus pandemic led to the postponement of talks.
