Dubai: UAE headquartered Dana Gas is still hopeful of a positive outcome from its talks with the Egyptian government over an extension to its rights on the Block 6 North El Arish concession.
The concession was supposed to have expired mid-March, but Dana Gas contends that this continues ‘due to the intervention of force majeure’. “Dana Gas remains in active discussions with the Egyptian Government to agree on the optimal way forward for Block 6 in the best interest of all the parties concerned,” it added.
Dana Gas, which has reported solid financials recently from higher energy prices, had initially acquired the Block 6 concession in late 2013. This agreement, according to available info, had an 8-year exploration period.
In the recent past, Dana Gas, interestingly, initially decided to sell its Egyptian operations (announced late October 2020) and then rolled back on the decision in April last year.
“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,” Dana Gas had said at the time. “The Board has therefore decided to retain and operate the assets in Egypt alongside the highly prospective exploration acreage offshore Block 6.”
Thereafter, the surge in global energy prices was enough for Dana Gas to double down on its interest in Egypt operations - and to seek an extension to the Block 6 concession.