Dana Gas upbeat with cash-strapped Egypt

Aug. 28, 2013 at 7:26 AM
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SHARJAH, United Arab Emirates, Aug. 28 (UPI) -- Emirati energy company Dana Gas said Egypt was a central part of its long-term strategy but gains depend in part on receiving outstanding payments.

Dana said it has achieved a production rate of 41,500 barrels of oil equivalent from its Egyptian assets, the highest rate since 2011 and a 29 percent increase from the 2012 average.

Some energy companies operating in Egypt scaled back their work in response to political violence that erupted in the wake of a July 3 military decision to topple the government.

"Egypt remains a core part of our long-term strategy and we remain committed to enhancing production and developing our assets in Egypt," Dana Gas General Manager for Egypt Patrick Allman-Ward said Tuesday in a statement.

Dana said it is in talks with Egyptian authorities on financing projects that would help raise the production rate to approximately 50,000 barrels of oil equivalent. The company said that goal would be helped by the resolution of outstanding payments of around $270 million.

"We are working toward further increasing the production to 50,000 barrels of oil equivalent per day in the foreseeable future," Allman-Ward said. "This requires further investments in the fields and early resolution of the long-pending receivables will greatly assist in accelerating our capital investment decision."

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