The Egyptian General Petroleum Corporation (EGPC), Cheiron Petroleum Corporation, and Capricorn Energy have signed a landmark consolidation and investment agreement covering eight of Capricorn’s existing Egyptian Western Desert concessions, unlocking at least $208 million in exploration, development, and production investment over five years.
Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, oversaw the signing of the deal, which merges eight concession areas operated by Badr El-Din Petroleum Company — a joint venture between EGPC, Cheiron, and Capricorn — alongside new exploration acreage, bringing the total concession area to 6,181 square kilometres. The agreement extends the concession life by up to 20 years, with a 10-year development term and two optional five-year extensions, while amending fiscal terms to promote increased investment.
The work programme includes drilling 44 new oil wells, upgrading production infrastructure at the Badr-3 processing plant, reprocessing seismic data, and conducting a 3D seismic survey over 500 square kilometres. These measures are designed to maximise geological data value and identify new opportunities to boost output from Egypt’s most important crude oil-producing region.
Capricorn CEO Randy Neely said the company is delighted to have received the minister’s final approval and looks forward to working under the improved terms. The agreement, which has an operational start date of 1 July 2025, stems from a 2021 joint acquisition by Cheiron and Capricorn of Shell’s onshore Western Desert portfolio.
Source: agbi.com; egyptoil-gas.com; energy-pedia.com