Dana Dues Rise Again

UAE-based independent Dana Gas collected just $3mn from Egypt – a black mark for the Egypt General Petroleum Corporation (EGPC), which hopes to attract significant IOC interest to its bid round which closes next week – and did not receive any payment whatsoever from its KRG operations in the first quarter.

At the end of 1Q14, Dana’s outstanding receivables balance stood at $568mn. While the firm’s Egypt receivables were partially offset by a $37mn signature bonus at North al-Arish Block 6 and by amounts paid to Egyptian government-owned contractors, payment owed to the firm in the KRG continues to spiral. The KRG stopped paying Dana in July 2013, and ongoing arbitration has yet to “confirm” the level of payments due to Dana and its partners. Meanwhile, Dana KRG dues rose $68mn in 1Q14, pushing its total bill for the region to $583mn. The firm’s overall receivables balance is up 9% on end-2013 and by 30% from the end-1H13 figure. (CONTINUED - 296 WORDS)