ADES expects operations to commence within 90 days from now.
Saudi ADES Holding Company entered into a long-term agreement to invest $66 million in the oil fields of the Egyptian General Petroleum Corporation's subsidiaries, Suez Oil Company (SUCO) and Offshore Shukeir Oil Company Co (OSOCO), ADES company said in a statement to Saudi Tadawul.
Under the agreement, ADES plans to invest $30 million (SAR 112.5 million) in SUCO and $36 million (SAR 135 million) in OSOCO over the initial three years. The objective of these investments is to achieve incremental production growth.
The agreement has a duration of 10 years, extendable for an additional 10 years. The timeframe and amounts of investment are tied to the levels of incremental production achieved.
ADES expects operations to commence within 90 days from now.
As part of the agreement, the consortium, including ADES, SUCO, and OSOCO, will hold a share of incremental production ranging between 61% and 72%. The exact share will depend on the total barrels produced and the referenced price per barrel based on market quotes.
Earlier in February, Egypt extended contracts with Saudi Advanced Energy System (ADES) for 3 offshore platforms with a cost of $120 million, according to sources cited by Asharq Bloomberg.
According to data published on the Saudi company’s website, it has 10 offshore drilling rigs operating in Egypt out of 49 offshore drilling rigs in its fleet.
