In a breakthrough development for Egypt’s oil and gas sector, Capricorn Energy has secured approval from the Egyptian General Petroleum Corporation (EGPC) to consolidate eight existing concession agreements into a single integrated framework with enhanced commercial terms.
The revolutionary agreement, which awaits Egyptian Parliamentary ratification expected in 2025, unites the Badr El Din (BED), Obaiyed, North Alam El Shawish, North Matruh, Sitra, BED 3, BED 2, BED 17 development concessions, and the North Um Baraka exploration concession under one comprehensive framework.
The transformative deal introduces a 20-year scope with improved fiscal terms including profit share of 27-29%, a merged single cost pool, 40% cost recovery over four years, and excess cost recovery of 20%. Most significantly, it establishes an enhanced gas price of US$4.25/mmbtu for incremental gas produced from existing fields and new discoveries.
“This agreement marks a key milestone in unlocking further value in our Egyptian Western Desert asset base,” declared Randy Neely, Chief Executive of Capricorn Energy PLC. “With the improved terms and consolidation of the development leases, the joint venture partners will be able to justify increased investment to unlock significant contingent resources, leading to increased production and reserves for the benefit of all stakeholders.”
Source: oilreviewafrica.com
