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A consortium led by Saudi-based ADES Holding Company (ADES has signed a long-term service agreement with subsidiaries of the state-owned Egyptian General Petroleum Corporation (EGPC) to operate and enhance production in two oil brownfields in Egypt.
The other consortium partner is a local exploration and production (E&P) player, the company said in a statement.
ADES plans to invest $30 million in Suez Oil Company (SUCO) and $36 in Shukeir Marine Oil Company (OSOCO) during the first three years of the agreement to achieve incremental production.
The consortium aims to achieve incremental production levels surpassing the current baseline production at the two brownfields.
ADES will be entitled to incremental production returns based on a mutually agreed formula.
The consortium’s share of incremental production will range between 61 and 72 percent depending on the total barrels produced, as well as a referenced price per barrel based on market quotes.
The operations at the two oilfields are expected to commence within 90 days.
The agreement is valid for 10 years, which is extendable for an additional 10 years, the statement said.
(Editing by Anoop Menon)
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