Arab Finance: UK-based Energean plc plans to invest up to $150 million in Egypt over the next four years as it moves to combine its Abu Qir, North El Amriya (NEA), and North Idku (NI) concessions under a single framework, as per a press release.
The energy company has agreed with the Egyptian General Petroleum Corporation (EGPC) on the principal terms of the unified concession, while the required formal and regulatory procedures are underway.
Subject to exploration results, the planned program could add as much as 50 million barrels of oil equivalent (MMboe) and help Energean double production from its Egyptian portfolio over the following decade.
The proposed concession will incorporate two additional exploration areas: the deep horizon beneath Abu Qir and open acreage neighboring the company’s existing development leases. These areas are estimated to hold more than 4 trillion cubic feet (Tcf) of exploration potential, including around 3 Tcf of gas in the deep horizon.
Energean’s investment plan includes drilling six wells, acquiring more than 700 square kilometers of new ocean bottom node (OBN) seismic data, and reprocessing existing three-dimensional (3D) seismic data.
The seismic work aims to improve subsurface imaging and help identify further development and exploration prospects. The combined framework is expected to offer better fiscal and commercial conditions, including higher gas prices.
Energean said the revised terms would extend the economic life of its existing assets and support additional investment in exploration and development.
The program comes as the Egyptian government and EGPC make progress in clearing amounts owed to the company. Historical dues have largely been settled, current payments are being made regularly, and Energean’s net receivables in Egypt have fallen to their lowest level since 2020.
"We welcome the significant progress made by the Egyptian Government and EGPC in addressing outstanding receivables. Historical dues have been substantially settled, payments are being made regularly, and our net receivables are now at their lowest level since 2020. This improved payment environment, together with our constructive cooperation with the Egyptian authorities and improved concession terms, provides greater confidence and a stronger foundation for international investment in Egypt’s energy sector," Energean CEO, Mathios Rigas, said.
“Our planned $150 million investment programme reflects that confidence. Our ambition is to double production from our Egyptian portfolio over the following decade, investing in our existing assets while progressing new development and exploration opportunities. With more than 4 Tcf of exploration potential, including approximately 3 Tcf of gas in the deep horizon, we see significant opportunity to grow production while supporting Egypt’s objective of maximising domestic gas resources and strengthening energy security,” he added.
