Page 12 - AfrOil Week 04 2022

AfrOil PROJECTS & COMPANIES AfrOil

Pharos Energy signs third amendment

to El Fayum concession agreement

EGYPT LONDON-HEADQUARTERED Pharos Qarun, a transaction which the Pharos Energy
Energy has signed the third amendment to the expects to complete in the first quarter of 2022.
El Fayum concession agreement, with the petro- Pharos Energy is an independent oil and gas
leum ministry represented by Egyptian Gen- exploration and production company, which is
eral Petroleum Corp. (EGPC). The agreement listed on the London Stock Exchange (LSE). It
became effective upon signature on January 19, held a 100% working interest in the El Fayum
with retroactive application of the improved fis- oil Concession in the Western Desert in Egypt
cal terms as from November 2020. until completion of the farm-out to IPR Energy
Under the new terms, the share of gross reve- announced on September 15, 2021. The conces-
nues, the Cost Recovery Petroleum percentage, sion produces from 10 fields and is located 80
that is available for the Pharos Energy to recover km south-west of Cairo. It is operated by Pet-
its costs will be raised from 30% to 40%, allow- rosilah, a 50:50 joint venture between Pharos
ing the company a significantly faster recovery and EGPC.
of all its past and future investments and signifi- Similarly, until completion of the farm-out
cantly lowering the development project break- transaction, Pharos is also an operator with a
even. In return, Pharos has agreed to waive its 100% working interest in the North Beni Suef
rights to recover a portion of the past costs pool, concession, which is located immediately south
estimated to be around $115mn, and reduce its of the El Fayum concession. ™
share of Excess Cost Recovery Petroleum from
15% to 7.5%.
The new arrangements will strongly encour-
age new exploration and development invest-
ments, aimed at maintaining and increasing
production rates and optimising resources.
The third amendment also grants Pharos
Energy a three-and-a-half-year extension to
the exploration licence term, with an additional
obligation to drill two exploration wells and
acquire a 3D seismic survey in the northern area
of the licence.
Signature of the third amendment was a key
condition for the transfer of a 55% participat-
ing interest and operatorship in the El Fayum
and North Beni Suef concessions to IPR Lake El Fayum is in Egypt’s Western Desert (Image: Pharos Energy)

TransGlobe signs PSA merging three

oil-bearing concessions in Egypt

EGYPT CANADA-BASED TransGlobe Energy Corpo- crude oil.
ration (TransGlobe) signed a production-shar- The agreement was preceded by the compa-
ing agreement (PSA) with Egypt’s Petroleum ny’s move to making a $15mn initial moderni-
Ministry on January 19, 2022, that merges the sation payment, in addition to a signing bonus
three producing concessions of West Gharib, of $1mn, which had been set as a precondition
West Bakr and North West Gharib. for the signing of the agreement. The terms of
The combined output of the three conces- the agreement also stipulate that the company
sions averaged 9,394 barrels per day (bpd) of oil should also pay another $10mn on February 1
in December 2021, divided between 8,590 bpd of each of the next five years, beginning on Feb-
in heavy crude and 803 bpd of light and medium ruary 1, 2022.

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