UAE’s Dana Gas Expands Lebanon, Egypt Operations

Abu Dhabi-listed Dana Gas said it had won a bid in Egypt to develop an offshore block in the Nile Delta and would go ahead even while the Egyptian government struggles to meet overdue payments.

Egypt owes at least $5 billion to oil companies, half of it overdue, as the government tries to avoid public unrest by subsidizing fuel prices. The country owes Dana around $230 million for gas supplies.

“The award of this concession demonstrates Dana Gas’ confidence in Egypt over the long term,” Rashid Al-Jarwan, the company’s executive director, said in a statement Monday.

“We continue to engage in a constructive dialogue with government entities and the Petroleum Ministry to resolve the issue of the outstanding receivables,” he added.

Dana Gas also announced it had prequalified as a nonoperator in Lebanon’s first offshore licensing round. Ten deep-water exploration blocks are available, ranging from 1,500 to 2,500 square kilometers, the statement said.

Lebanese Energy Minister Gebran Bassil said earlier this week that the country had selected 46 international oil companies to bid for gas exploration in its Mediterranean waters.

Dailystar