UAE’s Dana Gas delays its decision on Egypt assets sale due to market turmoil
Dana Gas delays its decision on Egypt asset sale on covid fears: Dana Gas has postponed its decision on whether it will sell its Egypt assets because of the global covid-induced market turmoil, Reuters reports, citing two unnamed sources close to the talks. Plunging oil prices probably haven’t helped matters. The Emirati energy company is still in talks and the valuation process is still ongoing, the sources said, without saying when they would be completed.
Background: Dana Gas had said in February that it would make a decision by the end of March on the sale, saying it had received several bids for its onshore and offshore assets and was finalizing its technical and commercial evaluation. The company had issued a tender for its 14 development leases which cover three concessions in the Nile Delta region and a 26.4% stake in a gas liquids extraction plant in the Gulf of Suez.
Dana was planning to use the proceeds to cover USD 397 mn in outstanding sukuk due at the end of October. Egypt also still owes Dana EGP 111 mn in outstanding payments, and CEO Patrick Allman had previously suggested that the company could offload the outstanding arrears to the eventual buyer of its Egypt portfolio.
UAE’s Dana Gas delays decision on Egypt assets sale- sources
The United Arab Emirates-based energy producer Dana Gas has delayed a decision on whether to sell its Egyptian assets because of the market turmoil caused by the coronavirus outbreak, two sources close to the talks said on Thursday.
In February, Dana Gas said it had received bids from some companies for its assets in Egypt and that a final decision would be made by the end of March.
“A decision has not been reached yet, mainly due to the coronavirus global impact. However the (assets) valuation process is under way,” one of the sources told Reuters on condition of anonymity.
No specific date was given for reaching a decision on the potential sale, but a second source said it was “on track”.
Production from Egypt fell 4% to 33,000 barrels of oil equivalent per day (boepd) in 2019 from 34,500 boepd in 2018, the company said in February.