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Tue 2 Aug 2011 12:14 PM

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Dana Gas waits on payment for gas in Egypt

Energy firm reported delay in payment for $148m worth of gas sales to Egypt

Dana Gas waits on payment for gas in Egypt

UAE
energy firm Dana Gas has not yet received payment for gas delivered in Egypt,
it said in a statement on Tuesday.

In
May, Dana's management reported delayed payments of $148m for gas sales to the
Egyptian government and said if these were not met it would impact on its
future investments in the country.

An
Egyptian official told Reuters last week Egypt had settled all its debts.

But
Hany Elsharkawi, president of Dana Gas Egypt, said in a statement on Tuesday
that the company is still awaiting the settlement of its overdue payments for
the gas.

The
delay in payments was a result of disagreements over the interpretation of
certain production sharing agreement clauses with respect to the means of
calculating profit share splits at different production levels, the statement
said.

"The
two sides are currently reviewing several options to expedite payment of the
current overdue receivables," it added.

Dana
Gas has significant investments in Egypt and said it produced 4.25 million
barrels of oil equivalent (BoE) in the country during the first-quarter of this
year.

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