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
https://arab.news/5qn2z
Dana Gas cancels planned $236m sale of Egypt assets
- Energy firm said move would be positive for cashflow
- Original sale agreement struck in October
Implementation of the direct Gulf electrical interconnection project with the Sultanate of Oman begins
RIYADH: The Gulf Cooperation Council Interconnection Authority has announced the commencement of implementing the direct interconnection project between its system and the Sultanate of Oman's network, marking a strategic step that reflects the evolution of Gulf integration pathways in the energy sector and the strengthening of regional infrastructure.
Undersecretary of the Ministry of Energy and Minerals and Chairman of the Board of the Gulf Cooperation Council Interconnection Authority, Mohsen Al-Hadhrami, confirmed that the direct electrical interconnection project with the Sultanate is not merely a technical expansion of an electricity network, but rather represents an extension of a long-term strategic vision laid down by Their Majesties and Highnesses, the leaders of the Gulf Cooperation Council.
He noted that this vision was approved when the Gulf electrical interconnection project was adopted as one of the pillars of Gulf integration in infrastructure, stemming from the leaders’ belief that energy security constitutes a fundamental pillar for the stability of states, the growth of their economies, and the sustainability of their development.
He pointed out that the Gulf electrical interconnection has proven, over more than two and a half decades, to be one of the most successful models of joint Gulf action, as it has contributed to enhancing the reliability of electricity networks and achieving significant economic savings for the GCC states.
Al-Hadhrami added that the direct interconnection project with the Sultanate of Oman enhances the depth of the Gulf grid, increases its operational flexibility, and embodies an advanced model of Gulf partnership in financing vital infrastructure projects.
For his part, Ahmed Al Ibrahim, CEO of the Gulf Cooperation Council Interconnection Authority, explained that the project is considered one of the largest expansion projects in the authority’s history.
It aims to enhance the capacity of the Gulf grid to accommodate the rapid growth in electricity demand, in light of the expansion of internal networks in GCC states, major changes in electrical loads, and increased electricity generation, in addition to supporting renewable energy projects and raising the readiness of networks to face emergency situations.
The direct interconnection project with the Sultanate of Oman is considered a strategic step to enhance the integration of Gulf and regional energy networks, increase the reliability and sustainability of electricity systems, and support the objectives of GCC states in energy transition and reducing carbon emissions, thereby reinforcing the position of the Gulf electrical interconnection as a global model for regional integration in the energy sector.
