Dana Gas cancels sale of Egyptian assets

Middle East and North Africa-focused Dana Gas has terminated the $236mn deal with US independent IPR Energy to sell its Egyptian assets after conditions for the transaction could not be met, it said on April 25. The deal was first announced in October last year.

“A number of conditions precedent to the transaction could not be completed to the satisfaction of both parties prior to the long stop date of the sale and purchase agreement, which was Wednesday 14th April 2021,” it said.

The agreement covered 100% interests in the El Manzala, West El Manzala, West El Qantara and North El Salhiya onshore concessions and associated development leases. These concessions produced 30,950 barrels of oil equivalent/day in the first half of 2020. Dana has decided to retain and operate the assets in Egypt alongside the exploration acreage offshore Block 6. 

The company said it is still assessing the financial impact of the termination of the deal but expects positive consequences on its profitability and balance sheet and improvement in its cash flow in the coming years.

"These beneficial consequences result from the changed circumstances in the global economy and energy markets," it said.