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.

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 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. 

AllSource Analysis: Shell’s Idku LNG Ramps Up Exports - ENERGY EGYPT

July 15, 2017

The liquefaction terminals at Idku represent the only currently operating facilities in Egypt for the export of LNG. Since fall 2016, Egypt’s Petroleum Ministry and Shell, the operator of the facility, have agreed to increase the number of LNG cargo ships (hereafter “cargoes”) leaving Idku, which has been at extremely low levels for the past three years. Setting a target of 22 shipments for 2017, it is hoped that the facility can export enough to balance expenses and revenues. Imagery analysis confirms 4 cargoes leaving the port so far in 2017, illustrating tentative progress towards the goal, as well as beginning to pay down outstanding debts to Shell. The target of 22 shipments in 2017 will likely be revised upwards in 2018 and 2019 as the terminal approaches maximum output by 2020 to coincide with the massive Zohr field coming online and changing the Egyptian gas landscape entirely.

Smaller companies could miss out on IOC payments; all IOCs to be paid by 2019 - ENTERPRISE

Thursday, 18 May 2017

Smaller oil and gas operators may miss out on the second wave of payments to international oil companies (IOCs) the central bank is planning on dishing out, LeAnne Graves writes for The National. Governor Tarek Amer had said Egypt had made a payment of USD 750 mn to IOCs and will make a similar payment by 1 June. With both payments, Egypt’s arrears to IOCs would be brought down to USD 1.5 bn. “One small operator in Egypt, pumping about 10,000 barrels of oil per day, said payments from the government came in [EGP] with a ‘dribble of [USD]’. The executive, who asked not to be named, said some vendors were taking [EGP], but the firm didn’t have enough to pay anyone who wanted [USD],” Graves writes. Allen Sandeep at Naeem’s research arm expects “the amounts that would be paid per IOC would be proportionate to their part of the total outstanding amount of [USD 3.5 bn] as a whole.”

Egypt paid $750 mln in oil company arrears, to pay same in June - REUTERS

Tue May 16, 2017 | 1:31pm EDT

Additional reporting by Omar Fahmy; Writing by Eric Knecht; Editing by Mark Trevelyan

Egypt has paid off $750 million of its debt to international oil companies and will make a second payment of the same amount at the start of next month, Central Bank Governor Tarek Amer said on Tuesday.

Egypt has struggled to pay arrears to foreign oil and gas companies operating in the country, with outstanding debt at $3.5 billion before the latest payment.

"Today $750 million was paid to international oil companies and another $750 million will be paid on June 1, meaning that there is $1.5 billion the government has committed to pay to the international companies," Amer told a news conference.

The payments are the first since Egypt paid about $100 million in the last quarter of 2016.

Dana Gas first-quarter profit nearly doubles as production rises - WORLD OIL

5/11/2017
Anthony Dipaola

DUBAI (Bloomberg) -- Dana Gas PJSC profit nearly doubled in the first quarter as the United Arab Emirates-based natural gas producer boosted output.

See here press release.

Net income rose to 40 million dirhams ($11 million) from 22 million dirhams a year earlier, the company said Thursday in a statement to the Abu Dhabi stock exchange. Sales climbed 44% to 432 million dirhams.

Dana Gas, which pumps most of its gas at fields in Egypt and Iraq, is seeking to recover payments from both countries for overdue bills. The company was owed $1 billion from Egypt and the self-governed Kurdish region in northern Iraq at the end of the quarter. The receivables rose from $982 million at the end of 2016 because payments from Egypt slowed, CEO Patrick Allman-Ward said on a media conference call.

EGAS looking to borrow EGP 2 bn - ENTERPRISE / AL MAL

Monday, 13 February 2017

EGAS is in talks with domestic banks for an EGP 2 bn loan to cover debt obligations including those to international oil companies, Al Mal reported. The banks include NBE, Banque Misr, Banque du Caire, CIB, AAIB, QNB, ADIB, and Alex Bank, sources said. EGAS wants to pay the loan back over five years with a two-year grace period over which the loan will be completely issued and spent. This could come as good news for Dana Gas that has reportedly frozen its investments in Egypt over USD 265 mn of unpaid dues as of the end of 2016.

Dana Gas freezes investment in Egypt over delayed payments - ENTERPRISE

Sunday, 12 February 2017

Dana Gas says it is freezing investments in Egypt. The company will not inject new investments in the country because of delays in obtaining payments owed to it by the government, CEO Patrick Allman-Ward said, according to Reuters. 

Dana Gas says it is owed USD 265 mn as of the end of 2016, up from USD 221 mn by 2015’s end. "As uncertainty remains we must therefore be rigorous in balancing any additional capital investment in Egypt with actual collections," Allman-Ward said. 

His eyes are on the USD 5.5 bn Egypt raised through eurobond issuances and loans from the World Bank and African Development Bank, which he believes could be used to pay down debt owed to IOCs. Dana Gas recently announced it posted a USD 7 mn net profit in 4Q2016, down from USD 134 mn in 4Q2015.

Dana Gas profit falls 77 per cent last year amid lower oil prices and climbing Egypt arrears - THE NATIONAL (UAE)

February 9, 2017 12:28 PM
Anthony McAuley

Dana Gas said profit was hit by lower oil prices last year despite higher output, and it warned that investment in its growing Egypt operation might have to be curtailed until the government there resolves its arrears issue.

The Sharjah-based gas producer said its output climbed by 5 per cent last year as it ramped up Egyptian production, but profit fell 77 per cent because of lower oil and gas prices and the effect of a one-off payment in 2015.

The company said preliminary profit for last year was US$33 million, down from $144m the year before, with the previous year’s profit flattered by a one-off gain of $208m from settlement of a dispute with German energy company RWE over Pearl Petroleum, the consortium operating the Khor Mor and Chemchemal gasfields in the Kurdistan region in Iraq.

Excluding the RWE payment, Dana Gas lost $64m in 2015 as oil prices came down faster than its costs.

EGAS denies Dana Gas operations affected by outstanding receivables - ENTERPRISE / AL MAL

Thursday, 19 January 2017

Dana Gas operations and investments were not affected by unpaid receivables from EGAS, a senior official at EGAS told Al Mal. 

Dana Gas had earlier said it will have to review its 2017 investment plans for Egypt if the country does not repay dues by the end of the year.

Drilling down: Dana Gas CEO Dr Patrick Allman-Ward - ARABIAN BUSINESS

Saturday, 14 January 2017, 1:16 AM
Neil Halligan

Years of frustration appear to be ending for Dana Gas, who look set to capitalise on investments in both Kurdistan and Egypt to spur its next cycle of growth.

Dana Gas should have made more headlines than it has.

The Middle East’s largest private sector natural gas company has the potential to become one of the major regional players in the energy industry. But its less-than-expected real growth has little to do with the fall in oil prices, and more to do with government frustrations and a lack of opportunities.

When the Sharjah-based firm listed in 2005, investors clamoured for the opportunity to take part in the initial public offering. The interest saw the share price skyrocket five-fold within a week, but it has since crashed from AED4.71 ($1.28) in December 2005 to 55 fils (15 cents).

But prospects are brightening.

Word Bank aid will be used in part to pay off arrears to IOCs - ENTERPRISE

Wednesday, 11 January 2017

The government will pay arrears to international oil companies in part through the second tranche of the USD 3 bn World Bank development loan, an Oil Ministry official tells Al Shorouk. Arrears owed currently stand at USD 3.5 bn as December, Oil Minister Tarek El Molla had previously stated. This comes as the ministry has requested that the CBE allocate USD 270 mn per month to cover daily gas imports of 1.4 bcf, starting from June, Al Borsa reports, citing an unnamed ministry source. The ministry’s request comes as CAPMAS announced that natural gas consumption is on the rise, climbing by 11.8% last October.

Two oil companies reach agreements to pay suppliers in EGP - ENTERPRISE

Tuesday, 3 January 2017

Oil and gas companies SDX Energy and Merlon International have reportedly reached agreements with their suppliers and contractors in Egypt to repay them in EGP, sources told Al Mal. The initial agreements allowed companies to pay 40% of their receivables in EGP, but the fall in international oil prices, delays in payments from EGPC, and the EGP devaluation have driven the companies to increase the portion they pay in EGP.

Shell offers Rosetta concession for sale - DAILY NEWS EGYPT

Tuesday December 20, 2016

Mohamed Adel

The government owes Shell $1.3bn for their share of the gas field, says source

The Dutch Shell Company has offered the Rosetta concession in Rashid for sale to any foreign company.

A source close to the company told Daily News Egypt that Shell decided not to carry out any development operations in Rosetta. “Development will be expensive with almost no economic feasibility, considering the price of gas produced there,” he explained.

He said the Rosetta field currently produces 40 million cubic feet of gas per day and will stop producing by July as the natural decay of productivity is not offset by development.

Production from Rosetta gas field to cease in July - DAILY NEWS EGYPT

December 11, 2016
Mohamed Adel
The company refused to pay for developments to offset the natural decline in production

The daily production of 40bn cubic feet of gas from the Rosetta field in Shell’s Rashid concession area will cease in July 2017, as the company refuses to pay for field development to offset the natural decline in production while dues owed by Egyptian government continue to accumulate.

A senior source at the Egyptian Natural Gas Holding Company (EGAS) told Daily News Egypt that development of Rosetta gas field requires huge funds but lacks economic feasibility to the foreign partner based on the current price of the gas produced from there.

BP acquired the Rosetta gas treatment plant in Rashid from Shell for $128m and received the field in April, then began preparing to link production of Fayoum and Giza fields to it.

Egypt accepts six bids for oil and gas exploration - REUTERS

Fri Dec 2, 2016 | 9:16am ESTReporting by Ehab Farouk; writing by Amina Ismail; editing by Susan Thomas

Egypt has accepted six bids for oil and gas exploration worth a total investment of up to $200 million, the Ministry of Petroleum said on Friday.

In May, the General Authority for Petroleum announced an international tender for 11 oil and natural gas blocks in the Western Desert and Gulf of Suez as Egypt looks to boost oil and gas production to meet growing energy demand.

Royal Dutch Shell, BP, Apache Corp and Apex International Energy are among the companies involved, the ministry said in a statement.

It said BP would invest at least $46 million, Apache at least $60.6 million and Shell at least $35.5 million.

Shell to boost deepwater investments, but is owed substantially by government - ENERGY EGYPT / ENTERPRISE PRESS

November 20, 2016

Shell will be increasing exploration and drilling at its deepwater concessions in Burullus and Rosetta concessions, according to statements by Aidan Murphy, Shell Egypt VP and country chairman.

The company plans to expand its investments there following promising data on the size of the concessions. Murphy also stated that the company is owed a substantial sum by the government, Al Shorouk reports, possibly tying these future investments to the government’s ability to payback its arrears.