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Project Insights

Egypt’s dollar squeeze may force Dana to cut spend

Egypt has been slow to pay IOCs for gas because of a shortage of US dollars, causing Dana Gas to consider curtailing its Egyptian investment plans Egypt has been slow to pay IOCs for gas because of a shortage of US dollars, causing Dana Gas to consider curtailing its Egyptian investment plans.
By Rachel Williamson 2 June 2016 Middle East & Africa / Exploration & Production 0 20520
A currency exchange office in Cairo. The country is facing a severe lack of US dollars. (PA)

The shortage of United States dollars in Egypt could start squeezing Dana Gas’s almost $400 million investment plans for the country within months, according to the company’s chief executive.

Patrick Allman-Ward told Interfax Natural Gas Daily the lack of dollars in Egypt, both from the central bank and from slowed receivables payments, would mean the company may have to start curtailing its projects if the situation does not improve within the next few months.

The fact Dana had not been able to source enough US dollars from...