Dana Gas receives $50m from Egyptian government with plans to boost operations

Dana Gas, one of the largest private natural gas companies in the Middle East, has received $50 million from the Egyptian government as it plans to increase its operations in the North African nation.

The payment “significantly” reduces overdue receivables in Egypt and will support the Sharjah-based company’s continuing drilling programme under a $100 million consolidation agreement, Dana Gas said on Monday in a filing to the Abu Dhabi Securities Exchange, where its shares trade.

The multiyear deal, signed with Cairo in late 2024, integrated Dana Gas’s concessions in Egypt and is aimed at supporting new upstream investment and expanding its scope for exploration drilling.

Dana Gas in August said it had made “solid progress” in its Egyptian operations.

Since the programme began, Dana Gas has drilled four wells, including the recent North El-Basant 1 discovery, which is estimated to hold 15 billion cubic feet of recoverable gas.

The company said it will spud – proceed with the early stages – of the fifth well, the Daffodil exploration well, in the first week of January. It expects seven to be delivered in 2026.

Dana Gas expects the initiative to contribute “directly to the national economy by supporting domestic gas supply and reducing the need for imports”, chief executive Richard Hall said.

“Our investment programme is already yielding positive outcomes. We have successfully brought new gas production online and additional wells are scheduled to follow,” he said.

Egypt's latest payment “acknowledges the importance of timely payments to ensuring the successful delivery of our drilling programme”, Mr Hall added.