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
IMF managing director Kristalina Georgieva commends GCC economic success
DUBAI: The managing director of the International Monetary Fund, Kristalina Georgieva, has commended the Gulf’s economic success and said she admires its efforts.
Speaking at the World Governments Summit on Tuesday, Georgieva said discussions with ministers of finance and central bank governors in the region were showing maturity, which helped them move their economies forward.
“If you want to compete in the world we are today, you have to come up with a sense of purpose and unity and the Gulf has demonstrated capacity to do so,” she added.
Georgieva said she admired what the Gulf Cooperation Council had done with investing in human capital and recognizing the importance of dialogue and cooperation: “Because you have invested in human capital before AI took over, you have such a strong comparative advantage today when this new technology is coming to life.”
She also urged Gulf countries to learn from Europe’s mistakes.
“In the Gulf I am enthusiastic about what I see, there is more interest in harmonization of regulations, more collective decision making and focus on interregional trade,” she said. “Potential for that is huge and the Gulf is thinking about how to make the GCC a more impactful institution. Don't copy European institutions, they are too complicated.”
Georgieva added that, despite political challenges and obstacles, the world still needed trading.
“Trade is like water, you put an obstacle and it moves around it,” she said. “The world is trading because the majority of small and medium sized countries can’t produce anything at home and they need an integrated global economy.
“We live in a world of exhaustive shocks, we live in a world of uncertainty, this is not going to change.”
Georgieva also urged governments to get their economies in the best possible order and to cooperate with their neighbors to build economic bridges and connections.
