Egypt’s Minister of Petroleum and Mineral Resources has formally signed the consolidated and amended concession agreement covering Capricorn Energy’s rights over its existing Egyptian Western Desert concession areas — making official an arrangement that positions the company for up to two decades of continued operations in one of Egypt’s most established oil-producing regions.
The minister’s signature brings the new agreement into immediate legal effect, with operations commencing from 1 July 2025 — the date from which the merged concession terms became applicable and Capricorn’s work programme obligations formally began. The agreement consolidates Capricorn’s existing concessions to generate operational and financial efficiencies, extends the concession life by up to 20 years through a 10-year development term with two optional five-year extension periods, and introduces amended fiscal terms specifically designed to promote increased investment in the assets. Capricorn holds a 50 per cent participating interest in the concessions jointly with operating partner Cheiron Oil and Gas Limited.
Capricorn Energy Chief Executive Randy Neely welcomed the formal approval, expressing gratitude to the Egyptian General Petroleum Corporation and Cheiron for their collaboration throughout the consolidation process and affirming the company’s commitment to working effectively under the improved terms. The concession area has been performing strongly in recent periods: a waterflood programme initiated at the Badr El Din development resulted in increased production levels, with Capricorn reporting Egyptian output of 20,024 barrels of oil equivalent per day in 2025, exceeding the company’s own guidance range of 17,000 to 21,000 barrels per day.
Source: oilreviewafrica.com