Regional natural gas company Dana Gas received $40 million in dues from the Egyptian government, the company said in a press release issued Monday.
This brings the company's total receipts from the Egyptian government to $88.8 million in the first half of 2018.
“It is a timely cash boost and highlights the government's publicly stated commitment to substantially reduce the petroleum companies' receivables during 2018,” Dana Gas CEO Patrick Allman-Ward said.
The company will use the cash to contribute to the growth of its projects, including drilling Balsam-8 in the company’s development lease onshore in the Nile Delta to increase production.
“Our primary focus remains on increasing production and drilling our first offshore well in Block 6, due to commence in early 2019. Block-6 is highly prospective and contains several material prospects with multi-Tcf potential,” Allman-Ward added.
By 15 March of this year, total receivables related to oil and gas production for Dana Gas from Egypt stood at $228 million, Reuters reported.
The company’s CEO said then that Dana Gas would spend $47 million in Egypt in 2018.
Dana Gas penetrated the Egyptian market in 2007 and is now the fifth largest gas producer in Egypt.