Dana Gas has received a $50 million (AED 184 million) payment from the Egyptian government, easing outstanding receivables and supporting the company’s expanding drilling programme in the country.
The payment is linked to the Consolidation Agreement signed in December 2024, which unified Dana Gas’s Egyptian concessions under improved fiscal terms designed to accelerate upstream investment. The agreement also granted additional acreage earmarked for new exploration drilling, strengthening the company’s long-term growth prospects in Egypt.
Since the programme began, Dana Gas has drilled four wells, including the North ElBasant 1 discovery, estimated to hold around 15 billion cubic feet (bcf) of recoverable gas. These wells have added 18 million standard cubic feet per day (mmscfd) of production and delivered a material increase in reserves. In parallel, the company has completed workovers on three existing wells, contributing an additional 9 mmscfd, with further candidates under evaluation for 2026.
Dana Gas plans to drill seven more wells next year, with the Daffodil exploration well scheduled to spud in January. The expanded drilling campaign forms part of an 11-well investment programme expected to be completed in 2026.
Chief Executive Richard Hall said the latest payment would help fund the company’s investment plans in Egypt and underlined the importance of timely government settlements in sustaining drilling momentum. He added that the programme is already delivering tangible results, bringing new gas volumes online while reinforcing Egypt’s domestic energy supply.
Egypt has become increasingly reliant on imported LNG and fuel oil in recent years as domestic production declined. Dana Gas estimates that its 11-well programme could generate more than $1 billion in economic savings by displacing imported LNG and mazut with locally produced gas, supporting energy security and reducing foreign currency outflows.
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