LONDON: Pharo Energy plc, an independent energy company with operations in Vietnam and Egypt, announced on Wednesday the signing of a non-binding Memorandum of Understanding (MOU) with the Egyptian General Petroleum Corporation (EGPC).
This MOU, in collaboration with IPR Lake Qarun Company (IPR), pertains to the merger of the El Fayum and North Beni Suef Concession Agreements.
IPR and Pharos, as Contractor parties under the current Concession Agreements, had previously requested EGPC to consolidate the two assets into a single Concession Agreement. The anticipated consolidated agreement aims to unlock significant value in Egypt’s Western Desert by improving fiscal terms, extending the concession period, and committing to additional work programs to boost production.
Under the terms of the MOU, EGPC and the Contractor parties will exert their best efforts to finalize negotiations on the new Concession Agreement promptly. The objective is to secure government and parliamentary approval, followed by the signing of the agreement by all parties at the earliest convenience. Market updates will be provided as negotiations progress.
Katherine Roe, Chief Executive Officer of Pharos Energy, commented, “The signing of the MOU marks a key milestone in our Production Sharing Contract (PSC) consolidation process, a goal we’ve been striving towards for many months. We appreciate the continued support and cooperation of EGPC and our partner IPR in achieving this mutually beneficial agreement.”
Roe added, “The new consolidated Concession Agreement, alongside improved fiscal terms, is crucial for further organic growth within our Egyptian portfolio. This, in turn, will generate significant value for our shareholders. We remain committed to working closely with all parties to complete negotiations as swiftly as possible.”