REG - Pharos Energy PLC - MOU for the merger of the Egyptian concessions

Pharos EnergyAnnouncement

19/02/2025 07:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250219:nRSS5972Xa&default-theme=true

RNS Number : 5972X  Pharos Energy PLC  19 February 2025

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDSFMESAEISEEE