Pharos
Energy plc
("Pharos"
or the "Company" or, together with its subsidiaries, the
"Group")
Memorandum of Understanding with EGPC for the merger of the
Egyptian concessions
Pharos Energy plc, an independent
energy company with assets in Vietnam and
Egypt, is pleased to announce that,
together with IPR Lake Qarun Company ("IPR"), it has entered into a
non-binding Memorandum of Understanding ("MOU") with the Egyptian
General Petroleum Corporation ("EGPC") in relation to the merger of
the El Fayum and North Beni Suef Concession Agreements.
As previously announced, IPR and
Pharos, in their capacity as the Contractor parties under the
Concession Agreements, submitted a request to EGPC to merge the two
assets and replace them with a new consolidated Concession
Agreement. The consolidated Concession Agreement is expected to
unlock significant value in the Western Desert by improving certain
fiscal terms, extending the term of the concessions and committing
the Contractor parties to additional work programmes aimed at
increasing production from the areas.
Under the MOU, EGPC and the
Contractor parties agree to use their best efforts to conclude
negotiations on the new consolidated Concession Agreement as soon
as possible, with a view to the agreement receiving government and
parliament approval and then being signed by all parties at the
earliest opportunity. Further updates will be provided to the
market in due course.
Katherine Roe, Chief Executive Officer,
commented:
"The signing of the MOU is a key milestone in the PSC
consolidation process, and one that the team have been working
towards for many months. Thank you to EGPC and our partner IPR for
their continued support and close cooperation in helping achieve
this mutually beneficial agreement.
"A
new consolidated Concession Agreement and improved fiscal terms are
key to further organic growth in our existing Egyptian portfolio
and in turn generating significant value for shareholders. We will
continue to work closely with all parties with the aim of
completing negotiations as soon as possible."
Glossary of Terms
Company
Pharos Energy plc
El
Fayum or the El Fayum Concession
The concession agreement for
petroleum exploration and exploitation entered into on 15 July 2004
between the Arab Republic of Egypt, EGPC and Pharos El Fayum in
respect of the El Fayum area, Western Desert, as amended from time
to time
EGPC
Egyptian General Petroleum
Corporation
Group
Pharos and its direct and indirect
subsidiary undertakings
IPR
or IPR Lake Qarun
IPR Lake Qarun Petroleum Co, an
exempted company with limited liability organised and existing
under the laws of the Cayman Islands (registration number 379306),
a wholly owned subsidiary of IPR Energy AG
MOU
Memorandum of
Understanding
NBS, North Beni Suef or the North Beni Suef
Concession
The concession agreement for
petroleum exploration and exploitation entered into on 24 December
2019 between the Arab Republic of Egypt, EGPC and Pharos El Fayum
in respect of the North Beni Suef area, Nile Valley
PSC
Production sharing contract or
production sharing agreement
Enquiries
Pharos Energy plc
Tel: 020 7747 2000
Katherine Roe, Chief Executive
Officer
Sue Rivett, Chief Financial
Officer
Mohamed Sayed, Chief Operating
Officer
Camarco
Tel: 020 3757 4980
Billy Clegg | Georgia Edmonds |
Violet Wilson | Tamsin Howard
Notes to editors
Pharos Energy plc is an independent
energy company with a focus on sustainable growth and returns to
stakeholders, which is listed on the London Stock Exchange. Pharos
has production, development and/or exploration interests in Egypt
and Vietnam. In Egypt, Pharos holds a 45% working interest share in
the El Fayum Concession in the Western Desert, with IPR Lake Qarun,
part of the international integrated energy business IPR Energy
Group, holding the remaining 55% working interest. The El Fayum
Concession produces oil from 10 fields and is located 80 km
southwest of Cairo. It is operated by Petrosilah, a 50/50 joint
stock company between the contractor parties (being IPR Lake Qarun
and Pharos) and the Egyptian General Petroleum Corporation (EGPC).
Pharos also holds a 45% working interest share in the North Beni
Suef (NBS) Concession in Egypt, which is located immediately south
of the El Fayum Concession. The first development lease on the NBS
Concession was awarded in September 2023 and production started in
December 2023. IPR Lake Qarun operates and holds the remaining 55%
working interest in the NBS Concession. In Vietnam, Pharos
currently has a 30.5% working interest in Block 16-1 which contains
97% of the Te Giac Trang (TGT) field and is operated by the Hoang
Long Joint Operating Company. Pharos' unitised interest in the TGT
field is 29.7%. Pharos also currently has a 25% working interest in
the Ca Ngu Vang (CNV) field located in Block 9-2, which is operated
by the Hoan Vu Joint Operating Company. Following the announcement
by Pharos in December 2024 of approval a five year extension to the
terms of the petroleum contracts for Blocks 16-1 and 9-2, together
with associated changes to fiscal terms and participating
interests, Pharos will hold a revised working interest in Block
16-1 (TGT) of 25.33% with effect from 8 December 2026 and a revised
working interest in Block 9-2 (CNV) of 20% with effect from 16
December 2027. Blocks 16-1 and 9-2 are located in the shallow water
Cuu Long Basin, offshore southern Vietnam. Pharos also holds a 70%
interest in, and is designated operator of, Blocks 125 & 126,
located in the moderate to deep water Phu Khanh Basin, north east
of the Cuu Long Basin, offshore central Vietnam.
