Dana Gas Company, the Middle East's largest private sector natural gas company, will review its operational and capital expenditure in Egypt in 2017 in the event of the continuation of delay in Cairo's payments, the company said on Wednesday.
In a press release on its third quarter revenues for 2016 , the United Arab Emirates (UAE) company said that Egypt’s accounts receivable balance registered $242 million by the end of September 2016, out of a total $311 million owed to the company for the first nine months.
Dana Gas company said that its total revenues for the past nine months amounted to $280 million compared to $324 million for the same period in 2015, explaining that lower oil prices over the first nine months of 2016 led to the decline.
Egypt increased oil production by 24 percent in Q3 on a year-on-year basis to 40,000 barrels of oil equivalent per day (boepd), reaching maximum plant capacity and an increase of 14 percent in the company's group production.
In August 2014, Dana Gas, which produces around 31,500 barrels of oil equivalent per day in Egypt and relies on the country for more than half of its output, signed an agreement with Cairo to recover outstanding arrears of $185 million by exporting the government's share of gas.
During the Egypt Economic Development Conference (EEDC) in Sharm el-Sheikh in 2015, Dana Gas announced another $350 million gas deal, which involves the drilling of nearly 40 new development wells, a similar number of workovers on existing wells, building new pipelines and debottlenecking an existing plant over the next 30 months.
Dana Gas is the sixth largest natural gas producer in Egypt and has other operations in UAE and Iraq's Kurdistan region.
