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Egypt-focussed upstream oil & gas company Apex International Energy (Apex) has acquired interests in four concessions in the country’s Western Desert oil-producing region from IEOC Production, a unit of Itay’s Eni.
Two additional concessions will be acquired by Apex after parliamentary approval of extensions, which is expected in the first quarter of 2023, the company said in a statement.
Apex has acquired all of IEOC’s interests in the Ras Qattara, West El Razzak and East Kanayis concessions, and a 25 percent interest in the East Obaiyed concession.
The statement said Apex will acquire the West Abu Gharadig concession and a 25 percent interest in the South-West Meleiha concession from IEOC following approval of extensions.
The company will become the concession operator through Farah Petroleum Company (PetroFarah), a joint venture between Apex and Egyptian General Petroleum Company (EGPC), the statement said, noting that IEOC will remain the concession operator in East Obaiyed and South West Meleiha concessions.
The acquisition is partly financed through a senior secured borrowing base facility arranged by The Mauritius Commercial Bank Limited.
In addition, Apex and IEOC were recently awarded the East Siwa exploration concession in the Western Desert, each with 50 percent interest with Apex as operator.
“We look forward to integrating these synergistic assets into PetroFarah to optimise and increase production,” said Thomas Maher, President and Chief Executive Officer, Apex. “We look forward to commencing first gas production in 2023,” he added.
(Writing by P Deol; Editing by Anoop Menon)
