Dana Gas recently agreed to sell its onshore Egyptian producing oil and gas assets to an affiliate of Texas-based IPR Energy Group for $236 million.
The sale by United Arab Emirates-based Dana Gas will bolster its balance sheet and allow it to focus on developing its world-class assets in the Kurdistan region of Iraq, it said in a statement on Oct. 25.
In a separate release on Oct. 26, IPR said the acquisition of Dana Gas’ Egypt onshore Nile Delta assets will transform it into one of Egypt’s leading local independent oil and gas companies.
Headquartered in Irving, Texas, IPR has operated in Egypt and the wider MENA (Middle East/North Africa) region for 40 years across the E&P upstream, oilfield services and integrated petroleum reservoir technology services.
The Dana Gas assets include 100% interest in the El Manzala, West El Manzala, West El Qantara and North El Salhiya concessions, operated through an operating joint venture with EGPC. Production from the assets is comprised of over 80% gas, according to the release.
IPR added in the release that the gas-weighted portfolio will also provide a natural hedge against oil price volatility and enhance the company’s exposure to transition fuels towards a lower-carbon energy world.
“We are excited to continue our expansion with this strategic transaction for our group,” M.K. Dabbous, chairman of IPR Energy Group, said in a statement on Oct. 26. “Dana Gas established an attractive portfolio of assets in Egypt that we intend to further develop, leveraging our expertise in enhancing the recovery of mature producing oil & gas fields as well as our longstanding onshore experience in the country.”
The transaction is expected to close in early 2021, according to the IPR company release. Natixis was the M&A adviser to IPR for the deal.
Reuters contributed to this article.
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