APA & Egypt’s Ministry of Petroleum to Modernize PSC in Western Desert

Source: www.oilegypt.com 5/4/2021, Location: Africa

APA Corporation (APA) announced it has reached an agreement in principle with Egypt’s Ministry of Petroleum and Mineral Resources (MOP) and the Egyptian General Petroleum Corporation (EGPC) in support of the MOP’s efforts to modernize the country’s petroleum sector.

The new Production Sharing Contract (PSC) will consolidate the majority of the concessions in the Western Desert of Egypt operated by APA Corporation subsidiary Apache Egypt (“Apache”) into a single new concession, which will account for more than 90% of the company’s gross production volumes in Egypt on a barrel of oil equivalent (BOE) basis. The changes simplify the contractual relationship with EGPC and include provisions to create a single cost recovery pool, adjust cost oil and gas and profit oil and gas participation, facilitate recovery of prior investment, update day-to-day operational governance, and refresh the term length of both exploration and development leases. The Apache entity that will become the sole contractor is owned two-thirds by Apache and one-third by Sinopec. The new PSC is subject to certain approvals within the Government of Egypt and ratification by Parliament.

“Egypt’s Minister of Petroleum and Mineral Resources, H.E. Tarek El Molla, has set important goals to modernize the country’s oil and gas sector and increase foreign investment. Today’s announcement follows nearly a year of discussions focused on those ends, and is great news for Egypt and Apache Egypt,” said John J. Christmann, APA Corporation CEO and president. “The new agreement in principle confirms Egypt’s commitment to economic development and public-private partnerships and will facilitate higher investment levels by Apache Egypt, resulting in more drilling, more production and more sustainability projects, while also enhancing talent development opportunities and delivering cost efficiencies through the introduction of new technology.”

“The agreement in principle with Apache Egypt is an important step as we modernize Egypt’s petroleum sector and position our country as a regional energy hub,” said H.E. Tarek El Molla, Minister of Petroleum and Mineral Resources, Arab Republic of Egypt. “It is a win-win for both parties and will help to drive increases in investment and production to the benefit of Egyptians.”

For more information about related Opportunities and Key Players visit Egypt Oil and Gas Projects


Japan >>  6/22/2021 - Etrion Corporation, a solar independent power producer, has completed the sale of its interests in the Company’s 13.2 MW Komatsu, 24.7 MW Shizukui...
Malaysia >>  6/21/2021 - PETRA Energy Bhd (“PETRA” or “the Group”) and Uzma Berhad (“UZMA”) announced on 18 June 2021 that PETRA’s wholly owned subsidiary Petra Energy Develop...

Suriname >>  6/19/2021 - A consortium including Qatar Petroleum has been awarded two offshore blocks in Suriname, under Production Sharing Contracts as part of the recent Suri...
Australia >>  6/18/2021 - Baron Oil Plc, the AIM-quoted oil and gas exploration company, is pleased to announce the alignment of interests in relation to the Chuditch PSC, by w...

Canada >>  6/18/2021 - Spruce Ridge Resources Ltd. has an agreement to purchase certain mineral leases with petroleum and natural gas rights, plus oil and gas wells, pipelin...
Romania >>  6/18/2021 - On June 17, 2021 S.N.G.N. Romgaz S.A. and ExxonMobil Exploration and Production Romania Holdings Ltd. signed an Exclusivity Agreement by which the se...




Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.