UK independent Capricorn announced on 30 March that Egypt’s Parliament “has ratified the consolidated and amended concession agreement,” that covers eight Western Desert concessions in which it holds 50:50 stakes with local partner, and operator, Cheiron. The partners will now work with Egyptian authorities to complete the final steps before Petroleum Minister Karim Badawi signs the amended concession agreement in the coming weeks.
“The new agreement extends the concession life by up to 20 years with a 10-year development term and two 5-year optional extension terms, amends the fiscal terms to promote investment, and merges the existing concessions to increase operational and financial efficiencies,” Capricorn says. Fiscal terms include an elevated gas price, up from the previous legacy price of $2.65/mn Btu to $4.25/mn Btu, in line with improved terms Cairo has agreed with other key Western Desert firms (MEES, 6 March). (CONTINUED - 188 WORDS)