ADES inks SAR 247.5M deal to boost oil brownfields in Egypt

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ADES Holding Co. signed a long-term service agreement with the Egyptian General Petroleum Corporation (EGPC) to operate and enhance production in key oil brownfields in Egypt, the company said in a statement to Tadawul.

ADES plans to invest $30 million (SAR 112.5 million) in Suez Oil Co. (SUCO) and $36 million (SAR 135 million) in Shukeir Marine Oil Company (OSOCO) – subsidiaries of EGPC – over the first three years of the agreement term to boost production, the statement added.

The 10-year agreement is extendable for an additional 10 years. The investment timeframe and amounts are linked to the levels of incremental production achieved.

The consortium’s share of incremental production will range between 61% and 72%, depending on the total barrels produced as well as a referenced price per barrel based on market quotes. The commencement of operations is expected within 90 days, the statement added.