London-listed minnow Pharos Energy says it has reached an agreement with Egypt’s state oil firm EGPC to amend the fiscal terms of the contract at its 5,270 b/d El Fayum concession. The firm says that under the new terms, its share of gross revenues, or “Cost Recovery Petroleum percentage” will increase from 30% to 40%. In return, Pharos says, it has agreed to waive some $115mn in past rights and reduce its share of “Excess Cost Recovery Petroleum from 15% to 7.5%.”

Pharos says the deal, similar to that agreed by Canada’s TransGlobe in late 2020 (MEES, 11 December 2020), enables “a return to operational investment” which it suspended in Q2 2020 as it wrote down the value of its Egypt assets by 70% (MEES, 28 August 2020). (CONTINUED - 157 WORDS)