UAE Dana Gas sells its onshore assets in Egypt for $ 236 million

The UAE Dana Gas Company announced today, Sunday, that it has entered into a binding agreement with the IBR Al Wastani Petroleum Company Ltd., a subsidiary of the IBR Energy Group, to sell its onshore assets Producing oil and gas in Egypt for up to $ 236 million, including future conditional payments.

IBR is a pioneering private company in the exploration and production sector of gas in Egypt, with nine concession areas and more than three decades of experience in enhancing levels of oil and gas extraction. From mature fields produced.

This deal comes as a result of a comprehensive sales plan, which the company started after conducting a strategic review of its business in Egypt and after entering into negotiations with a number of potential buyers in the second quarter of 2019. According to a statement issued by the company.

as a result, the company received four offers to buy. Negotiations with the best bidder have continued for a longer period as a result of restrictions imposed by the Covid-19 pandemic on travel and communications, and the impact of the pandemic on the global economy, which led to a sharp decline in global oil and gas prices.

and under the terms of the sale agreement, the consideration to be received by Dana Gas includes (1) a basic cash amount of $ 153 million, including net working capital associated with the assets sold It is calculated before any price adjustments on the date of completing the deal, and (2) conditional payments amounting to $ 83 million.These payments are linked to the average price of Brent crude and production performance during the period between 2020-2023 in addition to the completion of a number of potential commercial opportunities associated with other parties. / p>

The deal includes the sale of Dana Gas of its entire operating shares in its four onshore concession areas, namely Manzala, West Manzil, West Qantara, North Salhia, and development licenses associated with these areas. p>

During the first half of 2020, the average production of the aforementioned concessions was 30,950 barrels of oil equivalent per day, and their contribution to the company's EBITDA was $ 38 million.

The ownership rights, responsibilities and employees will be transferred to the buyer upon completion of implementation and obtaining formal approval of assignment contracts for various privileges.

The company, through its wholly owned subsidiary Dana Gas Egypt, will maintain its stakes in the ...