UAE's Dana Gas receives takeover offers for Egyptian assets

Cairo – Mubasher: Dana Gas, listed on the Abu Dhabi Securities Exchange (ADX), has started receiving purchase offers from several companies willing to acquire its assets in Egypt, the company’s head of investor relations Mohammed Mubaideen told Mubasher.

The Middle East's largest regional private sector natural gas company will decide whether to sell all or part of its assets in the North African nation based on the submitted offers, he added, noting that the deadline for submitting offers is mid-November.

Currently, the company’s production from Egypt exceeds 34,000 barrels of oil equivalent per day (boepd).

Dana Gas billed $58 million in Egypt and collected $81 million in payments, lowering its receivables to $117 million at the end of the first half of 2019.

The natural gas firm aims to contribute to strengthening Egypt’s position as an international gas hub, Mubaideen remarked.

Over its twelve-year presence in the North African nation, Dana Gas drilled over 50 offshore and onshore wells and raised the country’s actual production by 50% to be the fifth largest gas producer in Egypt, he noted.

Dana Gas aims to exit the Egyptian market as part of its plan to develop its assets in Iraq, which accounts for more than 90% of the company’s proved and probable reserves that exceed 1 billion barrels of oil equivalent, and raise the daily production to 900 million feet from 400 million, Mubaideen revealed.

It is noteworthy that the Sharjah-based firm hired the US-based investment bank Tudor, Pickering, Holt & Co. (TPH) to advise on the sale of its Egyptian assets which are valued at more than $500 million.