Pharos Vitality has acquired provisional approval from the Egyptian Common Petroleum Company’s (EGPC) important board to an modification of the fiscal phrases of its El Fayum Concession, which is now topic to the approval of the Egyptian authorities
Below the brand new phrases, the Price Restoration Petroleum share shall be elevated from 30% to 40%, permitting Pharos a considerably sooner restoration of all its previous and future investments.
In return, Pharos has agreed to
• Waive its rights to get well a portion of the previous prices pool (US$115mn) and
• Cut back its share of Extra Price Restoration Petroleum from 15% to 7.5%
Work for part 1b water flood programme in El Fayum has commenced, utilising the funds raised within the fairness inserting earlier this 12 months.
Ed Story, president and CEO, commented, “The improved value restoration phrases imply previous and future investments in El Fayum could be recovered due to a major enhance in Pharos‘ complete share of gross revenues. Collectively these new fiscal phrases imply an enchancment of as much as US$5.7/bbl within the breakeven worth.
“We respect the cooperation and dedication of the management workforce at EGPC and the help that we have now acquired from the Egyptian Ministry of Petroleum and Mineral Sources. We sit up for working with them to understand the numerous mutual advantages of those new preparations.”