Adel El Bahnasawy
According to two sources, DANA GAS, the Emirates company listed on the Abu Dhabi Stock Exchange, has postponed its decision in selling its Egyptian assets due to the market turmoil caused by the outbreak of Corona virus.
Last February, DANA GAS said that it had received offers from several firms for its properties in Egypt and that a final decision will be made by the end of March, according to the Reuters Agency..
One source said that because of the global effects of Coronavirus, no decision has yet been made. Nevertheless, the evaluation process (of assets) is continuing.
Moreover, last February the company claimed that the production from Egypt dropped by 4 per cent to 33 thousand barrels of oil equivalent per day in 2019, from 34,5 thousand barrels per day in 2018.
The UAE DANA GAS contracted the U.S. office of Tudor, Pickerin, Holt & Co, an investment and commercial bank, to serve as financial advisor to the offering of the assets of the company in Egypt.
The office was about to start accepting the offers from the interested companies to acquire the deal; then, evaluatinv these offers to choose the most suitable one.
A number from the working companies in Egypt started to negotiate with DANA GAS; however, the Emirati Partner saw the opportunity of using the help of an experienced American Company that provides an advice and finalizes the transaction procedures witht the potential buyers at the highest offers.
DANA GAS has announced selling its assets in Egypt to focus on the investments in Kurdistan, Iraq. Especially after the Emirati Company was disappointed in the Mirak exploratory well after the emergence of its economic futility.
PowerNews was the first to discover the origins of the deal, and the group of companies that Dana first met to negotiate her plan to sell the assets.
