Saudi ADES Holding to Invest USD 66 Million in Egyptian Oil Fields
The deal will boost the production of two Egyptian oil companies, the Suez Oil Company and the Offshore Shukeir Oil Company.
Saudi ADES Holding Company, one of Saudi Arabia’s leading offshore drilling companies, has signed a long-term agreement to invest USD 66 million in oil fields held by two subsidiaries of the Egyptian General Petroleum Corporation. The first, the Suez Oil Company (SUCO), will receive USD 30 million, and the second, the Offshore Shukeir Oil Company (OSCOCO), will receive USD 36 million.
The agreement will cover 10 years with options for extension. In return for their capital, ADES will be entitled to incremental production returns based on a formula agreed upon by all parties. ADES Holding is participating in this deal as a consortium partnership with a leading local Exploration and Production player to enhance oil production in Egypt.
The consortium’s share of incremental production profits will range between 61% to 72% depending on the total barrels produced and the price per barrel at referenced market rates. These operations are expected to begin within 90 days.
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