The company did not disclose the financial specifics of the agreement but it said that it expects the project’s returns to be reflected in its profits by 2025, as the project is expected to contribute 5% of earnings before interest and taxes.
ADES Holding was awarded a service contract agreement (LOA) with the Egyptian General Petroleum Corporation (EGPC) to operate and enhance production in key oil brownfields in Egypt, namely the SUCO and OSOCO fields. This is within a consortium with a local partner specialized in the field of oil exploration and production.
The new award has a 10-year tenor, extendable for a further 10 years, ADES said in a statement to Saudi Exchange Tadawul.
The company did not disclose the financial specifics of the agreement but it said that it expects the project’s returns to be reflected in its profits by 2025, as the project is expected to contribute 5% of earnings before interest and taxes.
The consortium will aim to increase incremental production levels, surpassing the current baseline production at the two brownfields.
The project will minimize initial capital outflow, with the majority being an operational expenditure (OPEX) related to adopt an efficient asset-light model.
Recently, Shell Egypt announced the success of completing the drilling of the first well in its three-well exploration campaign, Mina West, located in the North East El-Amriya block, in the Mediterranean Sea.
It revealed in a statement that drilling activities took place at a water depth of around 250 meters below sea level in the offshore Nile Delta, with primary data confirming the presence of gas-bearing reservoir.
