Dubai: Dana Gas said it terminated the sale of its Egyptian assets after it failed to come to an agreement with IPR Energy Group (IPR).
“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 (SPA), which was Wednesday 14th April 2021,” said Dana Gas in a statement.
The Board has therefore decided to retain and operate the assets in Egypt alongside the highly prospective exploration acreage offshore Block 6, it added.
Last year, Dana entered into a binding agreement with IPR for the sale of its onshore Egyptian producing oil and gas assets for up to $236 million (Dh866.88 million), including contingent payments.
With the cancellation of the sale, Dana said there will be “positive consequences” on the company’s profitability and balance sheet and improvement in its cash flow in the coming years. The company added that this is based on the assumption that there will be an improvement in the global economy and energy markets.
“Dana Gas has worked diligently to finalise this transaction - however, satisfaction of the conditions precedent in the SPA proved problematic between the parties,” said Patrick Allman-Ward, CEO, Dana Gas.
“Once the due date for satisfaction of those conditions expired, and after due consideration, the company resolved to exercise the right to terminate the SPA in accordance with its terms,” he added.