KEY POINTS
- Dana Gas received a $50 million payment from Egypt.
- The funds support an expanding drilling programme.
- New wells aim to cut LNG and fuel imports.
Dana Gas has received a $50 million payment from the Egyptian government, a move that reduces outstanding receivables and supports an expanding drilling programme as the country works to stabilise domestic gas supply.
The payment, equivalent to AED 184 million, is tied to a Consolidation Agreement signed in December 2024. That agreement brought Dana Gas’s Egyptian concessions under a single framework with revised fiscal terms intended to speed up upstream investment. It also granted additional acreage earmarked for new exploration activity, giving the company room to extend its drilling footprint.
Dana Gas Egypt drilling gains pace
Since the programme began, Dana Gas has drilled four wells across its Egyptian assets. Among them is the North ElBasant 1 discovery, which the company estimates holds about 15 billion cubic feet of recoverable gas. The four wells have added 18 million standard cubic feet per day to production and delivered what the company described as a material increase in reserves.
Alongside new drilling, Dana Gas has completed workovers on three existing wells. Those interventions have contributed an additional 9 million standard cubic feet per day to output. The company said further workover candidates are being assessed, with some expected to be executed in 2026.
Dana Gas plans to drill seven more wells next year as part of an 11-well investment programme scheduled for completion in 2026. The Daffodil exploration well is expected to spud in January, marking the next phase of the campaign.
Drilling backs supply
According to Oil Price, Chief Executive Richard Hall said the latest payment would help fund ongoing investment in Egypt and highlighted the role of timely government settlements in maintaining drilling momentum. He said the programme is already delivering results by bringing new gas volumes onstream and strengthening Egypt’s domestic energy balance.
Egypt has increasingly relied on imported liquefied natural gas and fuel oil in recent years as local production declined. Dana Gas said its 11-well programme could generate more than $1 billion in economic savings by replacing imported LNG and mazut with locally produced gas. Such savings would support energy security and reduce pressure on foreign currency reserves.
For Dana Gas, Egypt remains a core growth market. The combination of improved fiscal terms, expanded acreage and steady payments, the company said, provides a clearer runway for sustained investment as it pushes to raise output and reserves.
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