Dana Gas aims for higher prices in Egypt | The National:
"Sharjah-based Dana Gas is negotiating a higher price for natural gas extracts in Egypt ahead of drilling its first offshore well in the country.
“What we do need right now is a clear mechanism for a payment method going forward,” the chief executive Patrick Allman-Ward said yesterday.
Egypt needs to increase its natural gas production, which has remained stagnant since the early 2000s. But the price the government pays producers is fixed at US$2.65 per 1,000 cubic feet. Mr Allman-Ward said that while Dana Gas appreciates the willingness of the government to revise prices, the company would like a market-based gas system in Egypt. “While the increase[d] flexibility is extremely welcome, it’s difficult to do a discounted cash flow on the basis of a promise.”"
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