Summary of Licences: Egypt
Field
Licence
Type
Key Licence Terms
Licence Expiry
Fiscal Regime
Historical
Funding
Arrangements
ERQ
PSC with
EGPC
•
Development leases for20-year term over 9 fields discovered
•
7 year exploration period outside these 9 fields expired in September 2011
•
Minimum work obligations required:
•
conducting surface sampling and field work
•
acquisition of seismic surveys and
•
drilling of exploration wells, with minimum expenditure commitments
between $7.5m and $27m, currently no outstanding commitments
•
Various dates
between
2027-2031,
with a 5 year
extension
option
(1)
•
Cost oil entitlement cap: 35%
•
Capital cost recovered over 5 years
•
Profit oil percentage: 25-30%
•
Profit gas / condensate percentage: 30%
•
Annual training fee during exploration and
development: $50,000
•
Bonus paid to EPG upon reaching various
production milestones: $200,000-$600,000
RBL Agreement
OCF
Equity
Burg El
Arab
PSC with
EGPC
•
Development leases for20-year term over the oil field discovered in the PSC
area in 1996
•
Minimum work obligations required:
•
conducting surface sampling and field work
•
acquisition of seismic surveys and
•
drilling of exploration wells, with minimum expenditure commitments
between $7.5m and $27m, currently no outstanding commitments
•
December
2016, with a
5 year
extension
option
(1)
•
Cost oil entitlement cap: 35%
•
Capital cost recovered over 5 years
•
Profit oil percentage: 15- 22%
•
Profit gas / condensate percentage: 20%
•
Annual training fee during exploration and
development: $50,000
•
Bonus paid to EPG upon reaching various
production milestones: $1m-$2m
•
Extension lease bonus: $500,000
RBL Agreement
OCF
Equity
Abu
Sennan
PSC with
EGPC
•
Development leases for20-year term over the three producing fields in the PSC
area
•
Minimum work obligations required:
•
building a treatment facility for oil produced from the site
•
evaluating gas reserves for possible construction of gas facilities
•
drilling of exploration wells, with minimum expenditure commitments
between $7.5m and $27m, currently no outstanding commitments
•
Carries Dover Investments’ costs for Dover’s share of the cost oil recovery
entitlement +7.5% of Dover Investments’ share of the profit oil
•
Initial exploration period for the areas outside the 3 fields expired in May 2012
•
2 year extension with commitment to drill 3 wells with total expenditure
of $6.6m
•
Option additional 2 year extension with comment to drill 2 wells with
exploration and appraisal expenditure of $4.4m
•
2032 -2033,
with a 5 year
extension
option
(1)
•
Cost oil entitlement cap: 30%
•
Capital cost recovered over 5 years
•
Profit oil percentage: 17.9%
•
Profit gas / condensate percentage: 17.9%
•
Annual training fee: $50,000
•
Bonus paid to EPG upon reaching various
production milestones: $0.5m-$2m
•
Bonus paid to EPG upon the approval of each
development: $500,000
•
Extension lease bonus: $1,000,000
RBL Agreement
OCF
Equity
Area A
Service
Contract
with
GPC
(2)
•
Service comprising
•
an exploration services agreement governing the non-producing fields
•
a production services agreement governing the five producing fields
•
Minimum work obligations required:
•
exploration phase: drilling 1 exploration well before Sept2014
•
production services extension: drilling 6 development wells and conduct
of a Yusr Waterflood study
•
exploration
services:
February
2019
•
Production,
development
services: June
2023-2028
•
Service fee of $0.61 per barrel for
maintaining the baseline production and a
share of any incremental production where
gross production is above 500 bopd
•
for Shukheir North West: 49-57%
•
For all other fields: 49.0- 51.5%
•
No cost recovery applicable
RBL Agreement
OCF
Equity
Source: Kuwait Energy.
(1) Subject to approval from the Egyptian Ministry of Petroleum. (2) The licence holder, General Petroleum Company (“GPC”), under which the Group and Petrogas.
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