DMWA Resources – an Africa-focused resources and trading firm – has withdrawn its bid to acquire the Lagia oil producing field in Sinai, Egypt.
While DMWA management has not commented, sources close to the company state that it is strongly encouraged by its shareholders to pursue other marginal oil and gas field acquisitions across Africa.
The Lagia concession is currently owned and operated by a subsidiary of South Africa’s Efora Energy. Previously operated by Canada-based MENA Hydrocarbons, the producing asset was sold to Efora Energy’s predecessor SacOil Holdings in 2014.
Industry sources have revealed that MENA Hydrocarbons claims the terms of the share purchase agreement with SacOil were violated, and therefore, MENA still has a claim to the asset.