The court’s decision stated that the lawsuit of “IPR Al Wastani Petroleum Group” was rejected in its entirety, and the court ruled in favor of “Dana Gas” in its decision, which concluded that it was entitled to all the main points of the lawsuit, including its cancellation of the sale and purchase agreement, according to a statement for “Dana Gas” on its website.
Dana Gas had previously announced on April 22, 2021 that it had rescinded the sale of its onshore assets in Egypt to IPR El Wastani Petroleum Group, after the two parties were unable to meet a number of preconditions for the sale agreement to the satisfaction of both parties before the deadline To complete the sale agreement, last April 14, and accordingly, the company’s board of directors decided to terminate the sale agreement and continue to keep and operate the company’s assets in Egypt.
IPR El Wastani Petroleum submitted a request for arbitration challenging Dana Gas Egypt’s right to cancel the sale agreement.
According to the arbitration panel’s decision, “Dana Gas will continue to manage and operate its assets in the oil and gas sector in the interest of its shareholders and the Egyptian people.”
Dana Gas has been in Egypt for 14 years and is the fifth largest gas producer in Egypt. The value of the cash payments received by Dana Gas in Egypt amounted to about $23 million during the first quarter of 2021, and the value of these payments increased during the second quarter of 2021 to reach $75 million following the cancellation of the sale and purchase agreement.
Thus, Dana Gas received cash payments of $98 million in Egypt during the first half of 2021, compared to $43 million during the same period in 2020, representing an increase of 128%. This will result in a significant decrease in the company’s receivables of $131 million at the end of the first quarter.