DUBAI: Dana Gas, the UAE-based energy company, said it has terminated an agreement to sell its Egyptian assets for $236 million to IPR Wastani Petroleum.
A number of conditions needed to close the deal could not be completed by the deadline set down in the sale and purchase agreement, which was April 14, the company revealed in a filing to the Abu Dhabi stock exchange, where its shares are listed. The deal was originally announced last October.
It did not specify what the financial impact of the decision would be but said that it would have “positive consequences on the company’s profitability and balance sheet.”
“Dana Gas has worked diligently to finalize this transaction,” said CEO Patrick Allman-Ward. “However, satisfaction of the conditions precedent in the SPA proved problematic between the parties. Once the due date for satisfaction of those conditions expired, and after due consideration, the company resolved to exercise the right to terminate the SPA in accordance with its terms.”
The company said it would now focus on maximizing the enormous potential of the company’s offshore Block 6 concession where it plans to drill an exploration well in the first quarter of 2023.
Dana Gas cancels planned $236m sale of Egypt assets
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Dana Gas cancels planned $236m sale of Egypt assets
- Energy firm said move would be positive for cashflow
- Original sale agreement struck in October
