Dana Gas will review its 2017 investment plans for Egypt if the later doesn’t repay the full amount it owes the UAE-based energy firm by the end of 2016, its chief executive “Patrick Allman-Ward” said.
Dana has been hamstrung in recent quarters as it awaits receivables owed in both Egypt and Iraqi Kurdistan, following political and economic turbulence in both places which have delayed payments.
As of Sept. 30, the amount owed by Egypt was $242 million, up from $221 million at the end of 2015. Dana’s share of owed receivables from the Kurdistan Regional Government was $722 million, down marginally on $727 million at the end of 2015.
However, Egypt is hoping to secure $12 billion in aid from the International Monetary Fund (IMF) as part of a series of bilateral fundraisings and economic reforms – most notably the free float of the Egyptian pound – aimed at revitalizing its economy.
Part of the IMF loan will be distributed to the petroleum sector to meet outstanding debts, Allman-Ward told reporters on a conference call, citing conversations the firm had held with Egyptian officials. “If the payment doesn’t happen, we would be forced to review our investment plans” he said.
The payments issue is overshadowing a number of exploration developments in Egypt for the company. Its North El Arish Concession/Block 6 in the Eastern Nile Delta was an “exciting” prospect, Allman-Ward said.
Production from Egypt in the third quarter rose to 40,000 barrels of oil equivalent per day (boepd), up 24 percent on the same period last year.