A December 2024 concession agreement is already paying dividends — literally — as Egypt’s Nile Delta fields reverse a near-decade of decline
The Egyptian assets of Dana Gas, the Middle East’s largest regional private-sector natural gas company, recorded their strongest operational performance in nearly a decade during the first quarter of 2026, with production rising 4 per cent year-on-year to 13,050 barrels of oil equivalent per day (boe/d) — the first production growth in nine years.
Dana Gas attributed the improvement to its ongoing investment programme under the Consolidated Concession Agreement signed in December 2024, which merged 13 development leases from El Manzala, West El Manzala, and West El Qantara into a single concession known as New El Manzala. The company said drilling and well workover activities will continue throughout the year to maintain production momentum. It also confirmed receipt of all outstanding dues from the Egyptian government, including a final $20 million payment in April.
The company reported a net profit of $74 million for the quarter — up 72 per cent year-on-year — while revenues climbed 59 per cent to $145 million, driven partly by a one-time gain of $48 million linked to gas metering reconciliation in the Kurdistan Region of Iraq. Across all operations, group production averaged 53,150 boe/d during Q1 2026.
A notable milestone was achieved in Iraq, where the completion of the KM250 expansion project pushed gas production above 700 million standard cubic feet per day in January, adding 15,000 boe/d to net production in the Kurdistan Region and lifting total group output to 70,000 boe/d — the highest since 2018. Operations at the Khor Mor facility were briefly suspended in February due to regional geopolitical tensions before partially resuming in March.
Shareholders approved a dividend of 6.5 fils per share in April, totalling $124 million — an 18 per cent year-on-year increase — due for payment on May 19, 2026. Dana Gas ended the quarter with a consolidated cash balance of $228 million.
Sources: egyptoil-gas.com