Energean Plans $150 Million Egypt Investment as Concession Merger Advances
Energean plc is moving forward with plans to consolidate its Abu Qir, North El Amriya and North Idku concessions in Egypt under a single concession framework, paving the way for an investment programme of up to $150 million over the next four years.
Energean Plans $150 Million Egypt Investment
The programme is designed to increase production and unlock further development and exploration opportunities across the company’s Egyptian portfolio.
The new concession is also set to include two additional exploration areas covering the Abu Qir deep horizon and open acreage adjacent to Energean’s existing development leases.
Energean and the Egyptian General Petroleum Corporation have reached agreement on the main concession terms, while the required formal and regulatory procedures are currently progressing.
The new framework is expected to offer improved fiscal and commercial terms, including enhanced gas pricing, while extending the economic life of Energean’s existing assets and supporting additional development and exploration activity.
Subject to exploration success, the programme could add up to 50 million barrels of oil equivalent and support Energean’s ambition to double production from its Egyptian portfolio over the following decade.
The new exploration acreage is estimated to hold more than 4 trillion cubic feet of exploration potential, including around 3 trillion cubic feet of gas in the deep horizon.
The investment plan comes amid substantial progress by the Egyptian Government and EGPC in settling outstanding receivables.
Historical dues have been substantially settled, current payments are being made regularly, and Energean’s net receivables in Egypt have fallen to their lowest level since 2020.
Energean said the improved payment environment, progress on the concession merger and continued cooperation with the Egyptian Government and EGPC have created a stronger foundation for deploying additional capital in Egypt and supporting the country’s efforts to maximise domestic gas production and strengthen energy security.
Under the planned investment programme, Energean intends to drill six wells within the new concession, acquire more than 700 square kilometres of new Ocean Bottom Node seismic data, and reprocess existing 3D seismic data to improve subsurface imaging and identify future development and exploration opportunities.
Mathios Rigas, Chief Executive Officer of Energean, described Egypt as a core market for the company and an important part of its long-term growth strategy, adding that progress on the concession merger represents a key step towards unlocking a new phase of investment and growth from Energean’s Egyptian assets.
Rigas welcomed the progress made by the Egyptian Government and EGPC in addressing outstanding receivables, noting that the improved payment environment, constructive cooperation with the Egyptian authorities and better concession terms provide greater confidence and a stronger foundation for international investment in Egypt’s energy sector.
He said the planned $150 million investment programme reflects that confidence and supports Energean’s ambition to double production from its Egyptian portfolio over the next decade through investment in existing assets alongside new development and exploration opportunities.
Rigas added that the more than 4 trillion cubic feet of exploration potential, including approximately 3 trillion cubic feet of gas in the deep horizon, represents a significant opportunity to increase production while supporting Egypt’s objective of maximising domestic gas resources and strengthening energy security.
Energean also reaffirmed its longstanding partnership with EGPC and its commitment to continued cooperation with the Egyptian Government and its partners to deliver sustainable, long-term value for Egypt and its people.
