Egypt paying UAE-based Dana Gas for all fuel supplies 2012-10-30

Egypt paying UAE-based Dana Gas for all fuel supplies

Egypt is paying Dana Gas for amount fuel it is receiving from its operations in the country and the UAE-based company is optimistic outstanding payments will be settled, a Dana Gas board member said, World Arab Network reports according to local media.Economic turmoil has stretched Egypt’s finances and it fell behind in its payments to several fuel suppliers.Dana Gas was still owed AED 729 million ($ 198.5 million) for unpaid fuel bills by Egypt as at June 30, 2012, but Cairo has been keeping up payments for current supplies.“They are basically paying their current receivables, it’s the backlog that needs to be closed out. But we are optimistic that this is a short term issue,” said Majid Jafar, a Dana Gas board member and chief executive of Crescent Petroleum, Dana’s biggest shareholder.

“They have been very transparent and proactive in trying to address the receivables issue. The financial situation of the government is well known — the challenges that they are facing fiscally — but we are committed to Egypt long term.”Rather than being put off by payment problems that followed the overthrow of Hosni Mubarak after three decades in power, Dana is looking to grow in a country that has large reserves and booming internal request for them.

“We are interested in the new bidding rounds potential that the Egyptian government has announced and we think it’s a very promising market.”“We are interested in the new bidding rounds potential that the Egyptian government has announced and we think it’s a very promising market.”Dana already has substantial operations in Egypt and said last week that an Egyptian affiliate had started commercial output at a natural gas liquids plant.