Dana Gas, one of the largest private natural gas companies in the region, said payments from operations in Egypt increased 130 per cent in 2021.
Collections in the 12 months to the end of December reached $184 million, the company said on Wednesday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
“The payment underscores the government of Egypt’s commitment to settle oil and gas companies’ receivables,” said Patrick Allman-Ward, Dana Gas chief executive.
“The acceleration of payments will further enhance the country’s ability to attract more international investment, which will, in turn, boost economic growth.”
Dana Gas is the fifth-largest gas producer in Egypt with a total output of 29,200 barrels of oil equivalent per day. It has invested more than $2 billion in the development of gas fields in the country in the past 14 years. It operates 14 development leases with 100 per cent interest through its subsidiary Dana Gas Egypt, and has other projects in the country.
The Sharjah-based company received $39m in total payments in December, reducing the company’s receivables from the North African country to their lowest levels since starting operations in 2007 at less than $30m.
“The funds received from the Egyptian government give Dana Gas further confidence in pursuing its future investment plans in the country,” Mr Allman-Ward said.
Earlier this year, the London Court of International Arbitration ruled in favour of Dana Gas, validating the termination of an agreement to sell its onshore oil and gas assets in Egypt.
The arbitration was initiated in April by IPR Wastani Petroleum, a member of the IPR Energy Group, which had agreed to buy the assets in October last year.
However, Dana Gas cancelled the agreement in April saying the buyer had failed to meet certain conditions. A claim brought by IPR Wastani was rejected “in its entirety”, Dana Gas said in July.
Dana Gas is also active in other countries including the Kurdistan region of Iraq and the UAE. The company’s share of collections from sales of condensate, gas and liquefied petroleum gas in Kurdistan jumped 78 per cent to $150m in the 10-month period, up from $84m a year earlier.
The dispute concerns a 25-year gas sales and purchase contract between Dana Gas affiliate Crescent Petroleum and the National Iranian Oil Company related to a UAE gas project.
Dana Gas swung to a record net profit for the nine months ended September 30 on higher oil prices, improved operational performance and other income.
The company posted $279m in net profit for the January to September period compared with a loss of $379m in the same period last year.