Pharos Energy, an independent energy company with assets in Vietnam and Egypt, has announced that, together with IPR Lake Qarun Company ('IPR'), it has entered into a non-binding Memorandum of Understanding ('MOU') with the Egyptian General Petroleum Corporation ('EGPC') in relation to the merger of the El Fayum and North Beni Suef Concession Agreements.
As previously announced, IPR and Pharos, in their capacity as the Contractor parties under the Concession Agreements, submitted a request to EGPC to merge the two assets and replace them with a new consolidated Concession Agreement. The consolidated Concession Agreement is expected to unlock significant value in the Western Desert by improving certain fiscal terms, extending the term of the concessions and committing the Contractor parties to additional work programmes aimed at increasing production from the areas.
Under the MOU, EGPC and the Contractor parties agree to use their best efforts to conclude negotiations on the new consolidated Concession Agreement as soon as possible, with a view to the agreement receiving government and parliament approval and then being signed by all parties at the earliest opportunity. Further updates will be provided to the market in due course.
Katherine Roe, Chief Executive Officer, commented:
'The signing of the MOU is a key milestone in the PSC consolidation process, and one that the team have been working towards for many months. Thank you to EGPC and our partner IPR for their continued support and close cooperation in helping achieve this mutually beneficial agreement.
'A new consolidated Concession Agreement and improved fiscal terms are key to further organic growth in our existing Egyptian portfolio and in turn generating significant value for shareholders. We will continue to work closely with all parties with the aim of completing negotiations as soon as possible.'
Source: Pharos Energy
