Dana Gas has received a $20 million payment from Egypt, clearing all overdue receivables owed to its Egypt business and strengthening the Sharjah-listed company’s cash position as it pushes ahead with new drilling in the Nile Delta.
The payment brings Dana Gas Egypt’s receivables position fully up to date after years in which delayed collections weighed on investment visibility across the country’s upstream energy sector. It follows a $50 million payment received in December 2025 and reflects a wider effort by Egypt to rebuild confidence among foreign oil and gas operators after a foreign-currency squeeze disrupted payments, slowed drilling and contributed to weaker domestic gas output.
Dana Gas said the settlement was achieved through constructive engagement with the Egyptian Government and was supported by the stronger fiscal framework established under the Consolidated Concession Agreement signed in late 2024. That agreement consolidated the company’s concessions in Egypt, improved commercial terms and added exploration acreage intended to support new upstream spending.
The company’s Egypt operations also returned to growth in the first quarter of 2026. Average production rose 4 per cent year on year to 13,060 barrels of oil equivalent per day, compared with 12,550 boepd in the same quarter of 2025. Dana Gas described it as the first period of growth in Egypt after several years of natural decline at mature Nile Delta reservoirs.
Richard Hall, chief executive officer of Dana Gas, said the payment completed the settlement of overdue receivables and brought the company’s Egypt position fully up to date. He said the development demonstrated cooperation from the Egyptian Government and supported continued investment in the country’s energy sector.
The settlement is material for Dana Gas because the company has linked improved payments directly to its $100 million investment programme in Egypt. During 2025, it drilled four wells and completed workovers across three additional wells, adding about 30 million standard cubic feet per day of production and 36 billion cubic feet of reserves. Seven more wells are planned for 2026, with the Daffodil exploration well spudded in January.
Egypt’s energy sector has been under pressure from falling domestic gas production, rising import needs and delayed payments to international operators. Arrears to foreign oil and gas partners stood at about $6.1 billion at the end of June 2024, before the authorities began accelerating repayments. By January 2026, Egypt had paid around $5 billion and was targeting a reduction in remaining arrears to about $1.2 billion by June.
For Cairo, restoring regular payments is central to reversing the decline in gas output and reducing the need for liquefied natural gas and fuel oil imports. The country had shifted from aspirations of being a regional gas export hub to heavier reliance on imported supplies after domestic production weakened and power demand remained high. Timely payments are intended to encourage operators to resume drilling, invest in workovers and bring incremental reserves into production more quickly.
Dana Gas’s position in Egypt is part of a broader portfolio that includes major assets in the Kurdistan Region of Iraq and the UAE. The company reported average group production of 53,500 boepd in 2025, down from 56,500 boepd in 2024, with Egypt output falling 23 per cent for the full year because of natural field declines. KRI production averaged 40,900 boepd, supported by demand from local power generation and higher gas output from the Khor Mor field.
The Egypt receivables settlement therefore comes at a turning point for the company’s production outlook. Khor Mor’s KM250 expansion has lifted processing capacity by 50 per cent to 750 million standard cubic feet per day, while Egypt is being repositioned from a declining asset base into a stabilisation and recovery programme. Group production reached about 70,000 boepd in January 2026, its highest level since 2018, helped by the KRI ramp-up.
The payment brings Dana Gas Egypt’s receivables position fully up to date after years in which delayed collections weighed on investment visibility across the country’s upstream energy sector. It follows a $50 million payment received in December 2025 and reflects a wider effort by Egypt to rebuild confidence among foreign oil and gas operators after a foreign-currency squeeze disrupted payments, slowed drilling and contributed to weaker domestic gas output.
Dana Gas said the settlement was achieved through constructive engagement with the Egyptian Government and was supported by the stronger fiscal framework established under the Consolidated Concession Agreement signed in late 2024. That agreement consolidated the company’s concessions in Egypt, improved commercial terms and added exploration acreage intended to support new upstream spending.
The company’s Egypt operations also returned to growth in the first quarter of 2026. Average production rose 4 per cent year on year to 13,060 barrels of oil equivalent per day, compared with 12,550 boepd in the same quarter of 2025. Dana Gas described it as the first period of growth in Egypt after several years of natural decline at mature Nile Delta reservoirs.
Richard Hall, chief executive officer of Dana Gas, said the payment completed the settlement of overdue receivables and brought the company’s Egypt position fully up to date. He said the development demonstrated cooperation from the Egyptian Government and supported continued investment in the country’s energy sector.
The settlement is material for Dana Gas because the company has linked improved payments directly to its $100 million investment programme in Egypt. During 2025, it drilled four wells and completed workovers across three additional wells, adding about 30 million standard cubic feet per day of production and 36 billion cubic feet of reserves. Seven more wells are planned for 2026, with the Daffodil exploration well spudded in January.
Egypt’s energy sector has been under pressure from falling domestic gas production, rising import needs and delayed payments to international operators. Arrears to foreign oil and gas partners stood at about $6.1 billion at the end of June 2024, before the authorities began accelerating repayments. By January 2026, Egypt had paid around $5 billion and was targeting a reduction in remaining arrears to about $1.2 billion by June.
For Cairo, restoring regular payments is central to reversing the decline in gas output and reducing the need for liquefied natural gas and fuel oil imports. The country had shifted from aspirations of being a regional gas export hub to heavier reliance on imported supplies after domestic production weakened and power demand remained high. Timely payments are intended to encourage operators to resume drilling, invest in workovers and bring incremental reserves into production more quickly.
Dana Gas’s position in Egypt is part of a broader portfolio that includes major assets in the Kurdistan Region of Iraq and the UAE. The company reported average group production of 53,500 boepd in 2025, down from 56,500 boepd in 2024, with Egypt output falling 23 per cent for the full year because of natural field declines. KRI production averaged 40,900 boepd, supported by demand from local power generation and higher gas output from the Khor Mor field.
The Egypt receivables settlement therefore comes at a turning point for the company’s production outlook. Khor Mor’s KM250 expansion has lifted processing capacity by 50 per cent to 750 million standard cubic feet per day, while Egypt is being repositioned from a declining asset base into a stabilisation and recovery programme. Group production reached about 70,000 boepd in January 2026, its highest level since 2018, helped by the KRI ramp-up.
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