Dubai: Dana Gas on Sunday said it has entered into a binding agreement with IPR Energy Group (IPR) for the sale of its onshore Egyptian producing oil and gas assets for up to $236 million, including contingent payments.
This deal is the result of a “comprehensive formal sales process” initiated after a strategic review of the company’s Egyptian business, said Dana.
The natural gas producer has been engaged with prospective industry buyers since the second quarter of 2019.
“This asset sale is in line with Dana Gas’ strategic goals of strengthening its balance sheet andfocusing on the development of its world class assets in the Kurdistan Region of Iraq, “ said Dana Gas in a statement.
Oil and gas companies around the world have been selling non-core assets due to a drop in oil prices since the beginning of the year.
“Negotiations with the successful bidder extended over a longer period primarily due to the impact of the pandemic... on the world economy and the resulting sharp drop in global oil and gas prices,” said Dana Gas.