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EGAS set to sign development

agreements worth $377.7mn

EGYPT STATE-OWNED Egyptian Natural Gas Hold- Petroleum (Petrobel) and Disouq Petroleum
ing Company (EGAS) has announced plans (Petro Disouq) in the first half (July December)
to sign three new natural gas development of FY2020/2021.
agreements worth $377.7mn in fiscal year During the current fiscal year, EGAS has
FY2021/2022, which starts in July. This will help signed nine natural gas exploration agree-
push the North African country’s production ments with local and foreign partners with total
rate to 7.2bn cubic feet (204mn cubic metres) planned investments of $981mn to sink 18 wells.
per day of natural gas and 100,000 barrels per Moreover, the company has conducted 3-D seis-
day (bpd) of condensate, the company said in a mic studies covering an area of 18 square km in
press release following its annual general meet- the western Mediterranean.
ing (AGM) of shareholders. EGAS was also on target to deliver gas sup-
To promote domestic gasification, EGAS plies to 1.2mn additional residential units. This
plans to install the infrastructure to supply the would bring the total number of households
fuel to 1,500 villages as part of a rural develop- being supplied with gas since 2013 to up 6.5mn
ment plan. The company is also in the process in the first half of FY2020/2021.
of completing the installation of infrastructure Egypt has made its ample supplies of natural
to supply natural gas to two of Egypt’s newest gas the cornerstone for its national energy strat-
cities, the New Administrative Capital and El egy. The vast majority of domestic gas consump-
Alamein City. tion is divided between the electricity sector and
During the meeting, EGAS reportedly the industrial sector, which account for 57.6%
showcased the implementation details of three and 23.5% of the total respectively. The remain-
projects for developing gas fields that were der is made up by the residential, motor fuel and
assigned to Pharaonic Petroleum, Balayim petrochemical sectors. ™

ADM becomes indirect investor

in offshore Barracuda field

NIGERIA NIGERIA’S ADM Energy is set to join the effort
to develop Barracuda, an oilfield within the
Nigerian shallow-water licence area known as
OML 141, through its acquisition of a majority
stake in London-based K.O.N.H. UK, which is
an indirect shareholder in the field.
ADM announced its plans earlier this week,
saying it had struck a conditional agreement on
the project. In a statement, it explained that the
agreement was based on its plans to buy a 51%
in K.O.N.H. UK. The latter company, which
was registered in February of this year, holds an
indirect interest in the risk-sharing agreement
(RSA) covering Barracuda, it noted.
The acquisition might reach $1.3mn. Of the The Barracuda field lies within the OML 141 block (Image: Oryx Petroleum)
total, ADM said, “$250,000 is to be settled in
cash on completion, and the balance is to be set- intention of raising another $500,000 to fund the
tled in equity, at the higher of GBP0.07 and the deal through a share subscription programme.
the-prevailing share price, on completion and “The subscription will be effected by way of an
on satisfaction of certain project milestones.” accelerated bookbuild, at a price of GBP0.0425
The Nigerian company also stated its per new ordinary share,” it said..

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