Abu Dhabi – Mubasher: Dana Gas signed an agreement with IPR Wastani Petroleum Ltd, a member of the IPR Energy Group for the sale of its onshore oil and gas assets in Egypt for $236 million, including contingent payments.
This deal follows a strategy review of the company’s operations in Egypt and negotiations with several potential purchasers that started in the second quarter of 2019, according to a statement to the Abu Dhabi Securities Exchange (ADX) on Sunday.
The transaction includes the entire working interests of Dana Gas in El-Manzala, West El-Manzala, West El-Qantara, and North El-Salhiya onshore concessions and associated development leases.
The ownership, responsibilities, and staff will be transferred to the buyer after the execution and formal approval of the deeds of assignment for the various concessions.
Through its wholly-owned subsidiary Dana Gas Egypt, the company will keep its interests in its onshore and offshore exploration concessions, respectively El-Matariya (Block 3) and North El-Arish (Block 6).
Under the deal, Dana Gas will receive a base cash consideration of $153 million, including the net working capital associated with the assets and before any closing adjustments.
The company will also obtain contingent payments of up to $83 million based on the average Brent prices and production performance between 2020 and 2023 as well as the completion of prospective third party business opportunities.
The deal, subject to the approval of the Egyptian Ministry of Petroleum and Mineral Resources, is expected to complete by the beginning of 2021.
