UAE-based natural gas company Dana Gas won an arbitration case filed by IPR Energy in relation to the sale of oil and gas assets in Egypt.
IPR Wastani Petroleum, a member of the IPR Energy Group, had initiated arbitration in the London Court of Arbitration in April 2021 after Dana Gas scrapped the sale of its Egyptian oil and gas assets.
Dana said that the termination of the sale and purchase agreement (SPA), which was signed in 2020, was required as the two parties failed to meet certain conditions precedent to the transaction by 14 April 2021.
The tribunal at the London Court of Arbitration rejected IPR Wastani’s claim and concluded that Dana Gas’ SPA termination was valid.
Dana Gas will now continue to own and operate the El Manzala, West El Manzala, West El Qantara and North El Salhiya onshore concessions, as well as the associated development leases.
The firm currently has production of around 30,000boepd from 14 development leases.
In a press statement, Dana Gas said: “The award now means the assets will continue to be operated by Dana Gas for the benefit of its shareholders and the people of Egypt.”
The firm is now focusing on testing the potential of its offshore Block 6 Concession Area, which is estimated to hold over 20 trillion cubic feet (Tcf) gas resources.
Dana Gas plans to drill an exploration well at the Block 6 Concession Area in the first quarter of 2022.