Skip to main content

APA Corp. signs agreement with Egyptian government

Published by , Editor
Oilfield Technology,


APA Corp. has reached an agreement in principle with Egypt’s Ministry of Petroleum and Mineral Resources (MOP) and the Egyptian General Petroleum Corp. (EGPC) in support of the MOP’s efforts to modernise 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 Corp. subsidiary Apache Egypt 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 modernise 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 Corp. 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 modernise 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.”


Read the latest issue of Oilfield Technology in full for free: Issue 1 2021

Oilfield Technology’s first issue of 2021 begins with a look at US tight oil’s prospects this year. The issue then moves on to cover completions technology, production forecasting, electric fracturing, sand recovery and more.

Exclusive contributions come from Rystad Energy, Archer, Weatherford, Halliburton, CGG, NOV, TETRA Technologies, Clariant and more.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/07052021/apa-corp-signs-agreement-with-egyptian-government/

You might also like

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Upstream news Upstream project news Oil & gas news