Oil Egypt accountACCOUNT King Tut

Dana Gas Completes 1st International Condensate Sale in Egypt

Source: www.gulfoilandgas.com 4/26/2017, Location: Egypt

Share |
Dana Gas PJSC, the Middle East's largest regional natural gas company, has achieved an important milestone with the first international sale of condensate in Egypt under the Gas Production Enhancement Agreement (GPEA).

The first cargo is approximately 150,000 barrels of Wastani condensate and was loaded on 15 April 2017. The buyer has issued a letter of credit and payment amounting US$ 7.2 million will be made to Dana Gas directly in USD. The cargo is the first to be directly exported by Dana Gas under the GPEA signed with the Egyptian government in August 2014. The cash proceeds generated from the Government's share of the incremental condensate sales will be used to start paying-down the outstanding receivables owed to Dana Gas by the Egyptian Government.

Dr Patrick Allman-Ward, CEO, Dana Gas, said:

"We are pleased to have sold our first international cargo under the GPEA agreement. It was a landmark win-win deal at the time and importantly the mechanism is shown to be working. We can now continue to directly sell and export condensate cargoes internationally. By maintaining our production rate of roughly 40,000 barrels of oil equivalent per day, we expect to sell three additional cargoes in the next 12 months.

"The cash proceeds of US$ 7.2 million will be offset against our overdue receivables, which stand at $289 million. However, collections of our overdue receivables in general remain well below our expectations. We are yet to receive a significant payment this year. We continue to engage with various government entities and we hope that the Egyptian Government will resolve the situation favourably in the near future."

In the first quarter 2017, collections in Egypt were $13 million, representing 52% of total billings. Total receivable balance increased to $289 million from $265 million as of 31 December 2016. In Kurdistan, collections were $31 million, representing just over 100% of total billings. Total receivable balance remains at $713 million.

For more information about related Opportunities and Key Players visit Egypt Oil and Gas Projects

Egypt >>  5/23/2017 - Vallianz Holdings Limited, and together with its subsidiaries, has secured long-term charter contracts valued at up to US$115 million in total for fo...
Egypt >>  5/17/2017 - Russia's largest oil producer Rosneft and Italian energy company Eni have signed an agreement to broaden cooperation, including in possible joint oil ...

Egypt >>  5/16/2017 - Egypt will make a debt payment of $750 million to international oil companies on June 1, Central Bank Governor Tarek Amer said on Tuesday. Egypt has o...
Egypt >>  5/16/2017 - Production from Egypt's Nooros field has exceeded one billion cubic feet (bcf) of gas per day. Italian oil major Eni, which began production at the Ni...

Egypt >>  5/11/2017 - Egypt is holding talks with its liquefied natural gas (LNG) suppliers to defer contracted shipments this year and aims to cut back on purchases in 201...
Egypt >>  5/11/2017 - As part of its drive to help the Egyptian economy move to more environmentally friendly ways of production, the EBRD is providing local petrochemicals...

More News

Oil & Gas Companies in Egypt >>

Related Links

Oil Egypt E-Marketplace - Subscription Packages - Benefits

Copyright © Universal Solutions S.A.E. All rights reserved. Privacy Policy. - Career Opportunities - Feedback - Contact Us