Dana Gas clears Egypt dues after $20 million payment, production returns to growth

Dubai: Dana Gas has received a $20 million payment from Egypt, bringing all overdue receivables from the country fully up to date and giving the Sharjah-based natural gas company a cleaner collection position as production from its Egyptian assets returns to growth.

The company said the latest payment, equivalent to about Dh73 million, completes the settlement of Dana Gas Egypt’s overdue receivables and follows a $50 million payment received in December 2025.

The settlement was reached through continued engagement with the Egyptian Government, which Dana Gas said had shown commitment to clearing sector arrears and supporting energy investment in the country.

The payment marks a key financial milestone for Dana Gas in Egypt, where overdue receivables have previously weighed on cash collections and investment visibility.

The company said progress in collections followed the stronger fiscal framework created by the Consolidated Concession Agreement signed in late 2024. With the latest $20 million received, Dana Gas said its Egypt receivables position is now current.

“We are very encouraged by our progress in Egypt, both operationally and in collections," said Richard Hall, Chief Executive Officer of Dana Gas. "Importantly, this payment completes the settlement of Dana Gas Egypt’s overdue receivables and brings our receivables position fully up to date. It is a further demonstration of the Egyptian Government’s constructive cooperation and continued commitment to supporting investment in the country’s energy sector.”

Dana Gas also reported improved operational performance in Egypt during the first quarter of 2026, with average production rising 4% year on year to 13,060 barrels of oil equivalent per day, compared with 12,550 boepd in the same period last year.

The company said this marked the first period of production growth in Egypt after several years of natural decline, reflecting the impact of its ongoing investment programme across the Nile Delta.

Dana Gas is continuing with a $100 million investment programme in Egypt aimed at stabilising and increasing production from its assets in the country.

During 2025, the company drilled four wells and completed workovers across three additional wells, adding around 30 million standard cubic feet per day of production and 36 billion cubic feet of reserves.

The settlement gives Dana Gas a stronger footing in Egypt at a time when the company is linking improved collections with continued capital spending on production growth.

Hall added: “Dana Gas greatly appreciates the ongoing support and cooperation of the Egyptian Government, which has been instrumental in strengthening confidence, supporting ongoing investment, and enabling the Company to continue delivering value from its Egypt operations.”