Sale of assets in Egypt impacted by Covid-19

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The strategic review and potential sale of the Egypt assets of Sharjah-based Dana Gas has been impacted by the COVID-19 pandemic.

“Given the rapidly changing circumstances arising from the global reaction to the Covid-19 pandemic, the company is not able to predict when this process may complete,” the statement signed by CEO Patrick Allman-Ward told the stock exchange.

Bidders for Dana Gas assets were given the flexibility to bid only for development leases and exclude exploration deals.

A final decision was expected by end of last month. However, it is currently delayed due to the pandemic.

The report said company planned to pay down its outstanding Islamic bonds of $397 million, due on October 31, with the potential sale of its Egypt assets. It also noted that part of $111 million in receivables from Egypt was in the process of payment, and part was overdue.

In a statement on its 2019 annual results, Dana Gas had said production from Egypt had declined 4 percent to 33,000 barrel of oil equivalent per day (BOEPD) versus 34,500 BOEPD in 2018.

The company had an estimated 89 million BOE of proven and probable reserves in Egypt at the end of 2018, according to a February report by energy market data provider Argus Media. The report said independent assessments have pegged the value of the assets at around $800 million.

(Writing by Anoop Menon anoop.menon@refinitiv.com; editing by Seban Scaria)

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