Sharjah-based Dana Gas, which has had a history of payment issues with the Egyptian government, said it has received a payment of US$50 million.
In a filing with the Abu Dhabi Securities Exchange (ADX), where the Middle East’s largest regional private sector natural gas company is listed, Dana Gas said it has received the payment, significantly reducing overdue receivables.
The payment supports the company’s ongoing drilling programme under the Consolidation Agreement with the Egyptian Government, which was formally signed in December 2024. The agreement consolidated Dana Gas’ concessions in Egypt and provided improved fiscal terms to support new upstream investment, while also including additional acreage designated for exploration drilling.
At the time, Dana Gas had received a sum of US$20 million, but it came after a long period of non-payment, which eventually led the company to freeze its Egyptian investments over debts in February 2017. The amount owed by Egypt was US$265 million as of December 31, 2016.
New wells increase gas output
Since the new agreement commenced, Dana Gas has drilled four wells, including the recent North ElBasant 1 discovery, which is estimated to hold 15 bcf of recoverable gas. These wells successfully added 18 mmscfd of production and a material increase in reserves.
The Company plans to drill seven further wells under the programme in 2026, with the next – the Daffodil exploration well – expected to spud in January.
Richard Hall, CEO, Dana Gas, commented: “We are grateful to the Ministry of Petroleum and Mineral Resources, the Egyptian General Petroleum Corporation and the Egyptian Natural Gas Holding Company for their continued support.
“This latest payment, which will help fund our investment programme in Egypt, acknowledges the importance of timely payments to ensuring the successful delivery of our drilling programme.
“Thanks to the robust support provided by the Egyptian government, our investment program is already yielding positive outcomes. We have successfully brought new gas production online, and additional wells are scheduled to follow.
“The programme not only enhances Dana Gas’s upstream position in Egypt, it also contributes directly to the national economy by supporting domestic gas supply and reducing the need for imports. With the right support in place, we’re well-positioned to deliver the next phases of the programme and continue strengthening Egypt’s role as a regional gas hub.”
Dana Gas plans to deliver its 11-well investment programme in 2026, contributing over $1 billion in economic savings by displacing imported LNG and mazut with domestic production.
In parallel, Dana Gas has completed a workover programme across three wells, adding an additional 9 mmscfd of production. Further assessments are underway to identify additional workover candidates for 2026.
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