Reuters: UAE's Dana Gas in talks with Egypt over revising gas prices

United Arab Emirates-based Dana Gas said it was in talks with the Egyptian government to secure a higher price for some of the natural gas it extracts, as the North African country moves to encourage investment in energy.

Steadily declining gas production and foreign firms' wariness about any increase in investment have combined with price subsidies and rising consumption to create Egypt's worst energy crisis in decades.

Cairo has begun negotiating with international energy firms including Italy's Eni and Germany's RWE DEA, to raise the price it pays them for gas, particularly when prices are not high enough to cover the costs of production.

"Our existing concession agreements in relatively low-cost environments onshore don't fall into that category, but we do have some shallow gas in our existing onshore assets which probably do fall into that category," Dana Chief Executive Patrick Allman-Ward told Reuters on Thursday on the sidelines of an investment event.
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