Dana Gas wins arbitration on sale of Egypt assets

Dana Gas PJSC will retain and operate oil and gas assets in Egypt after winning arbitration on its termination of a sale and purchase agreement (SPA) from the London Court of Arbitration (LCIA).

Arbitration was initiated in April by IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, in relation to sale agreed to in October 2020.

Assets included Dana Gas’ 100% working interests in the El Manzala, West El Manzala, West El Qantara and North El Salhiya onshore concessions, operated through the WASCO JV, an operating joint venture with EGPC, as well as associated development leases. In first-half 2020, the concessions produced 30,950 boe/d.

The tribunal rejected IPR Wastani’s claim in its entirety and ruled in Dana Gas’ favour on all key points, concluding that Dana Gas’ termination of the SPA was valid.

Dana Gas terminated its agreement for the sale to IPR Wastani on the 22^nd April 2021, as the parties were unable to complete a number of conditions precedent to the transaction by the long-stop date of the 14^th April 2021.

Elsewhere in Egypt, but outside of the assets related to the arbitration, Dana Gas Egypt plans to drill an exploration well in its North El Arish (Block 6) offshore concession area in first-quarter 2022. The area is estimated to contain more than 20 tcf gas resources.

Source: Oil & Gas Journal