Middle East-focused gas firm Dana Gas says it has opened talks with Egyptian authorities over increasing its production in the country, after hitting the highest output level in two years.
The company reached 200million standard cubic feet a day – equivalent to 41,500 boed – as output increased 29% year on year at the company’s operations.
The recent crisis in Egypt has impacted on operators in the country, with many companies left waiting on payment for the oil and gas they produce for domestic use.
Dana confirmed they were in talks over resolving oustanding payments as it looked to grow its position in the country.
“We are working towards further increasing the production to 50,000 boepd in the foreseeable future,” said incoming chief executive Patrick Allman-Ward.
“This requires further investments in the fields and early resolution of the long-pending receivables will greatly assist in accelerating our capital investment decision. Recent improvements in foreign currency reserves of Egypt and fiscal support being provided by the GCC are positive developments in this regard.”
The company said it had spent around $270million on new projects in the country, including a new drilling programme and gas compression facilities for its El Basant field, as it looked to reach its 50,000 boed target.
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