Emirati Dana Gas Seeks to Sell Its Assets in Egypt to Pay off the Sukuk
The UAE Company, Dana Gas, plans to use the revenues from its assets in Egypt that it is trying to sell to pay its Sukuk. These are the assets that are located on the shore in the Nile Delta without Block 6 located in the eastern Mediterranean, and it is expected that the sale of the assets for exploration and production in Egypt, as a result to the latest drop in oil prices, according to Reuters.
The company says on Thursday, April 23, 2020: “If the sale is successful, the value of the sale will be used to pay off the sukuk as stipulated in the sukuk terms.” Sources also confirmed to Reuters that the company recently decided to sell assets in Egypt due to the coronavirus crisis. On Wednesday, April 22, 2020, the company said it had repurchased about $17.8 million of its sukuk.
Selling the company’s assets in Egypt is expected to be difficult, especially after last week’s oil price collapse, and US crude oil futures falling below zero dollars for the first time, but the company said in February 2020 that it had received bids from a number of companies regarding a possible sale assets are in Egypt, and Royal Dutch Shell started a sale of its Egyptian assets in November 2019.