Dana Gas wins arbitration in Egypt asset sale

Sharjah based, natural gas company, Dana Gas PJSC has won arbitration in relation to the Sale and Purchase Agreement (SPA) for the sale of oil and gas assets in Egypt. 

The arbitration was initiated on 28 April 2021by IPR Wastani Petroleum Ltd., a member of the IPR Energy Group. The company said in a statement it terminated its agreement for the sale of its Egyptian assets to IPR Wastani on 22 April 2021 as the parties were unable to complete a number of conditions precedent to the transaction by the long-stop date of 14 April 2021.

"The Board has made a decision to continue to hold and operate the assets in the best interests of the Company and its shareholders as well as for our broader stakeholders. We are committed to continuing to operate our onshore assets to the highest operational and safety standards. We are also excited about the potential of our offshore Block 6 Concession Area and we are working hard to be able to drill an exploration well in the block as soon as practicably possible," said Dr Patrick Allman-Ward, CEO of Dana Gas in the statement.

The ruling means the assets will continue to be operated by Dana Gas. It canceled the $236 million deal on April 22.