Petroleum Africa
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Wednesday, December 13, 2023
Saudi firm ADES Holding Company has announced that it has been awarded a service contract agreement with the Egyptian General Petroleum Corporation (EGPC). The 10-year contract enables ADES to operate and enhance production in key oil brownfields in Egypt, namely the SUCO and OSOCO fields.
ADES will work as part of a consortium with a leading local exploration and production player under the contract which can be extended for an additional 10 years.
Through a synergetic effort, the consortium will be dedicated to achieving incremental production levels that surpass the current baseline production at the two brownfields. Adopting an efficient asset-light model, the project minimizes initial capital outflow, with the majority being operational expenditure (OPEX) related. The consortium will be reimbursed with most of the OPEX incurred during baseline production and is entitled to incremental production returns based on a mutually agreed formula with EGPC. Additionally, ADES will be ideally positioned to capitalize on its extensive fleet operational in Egypt, ensuring economies of scale while maximizing efficiency and returns to shareholders.
Dr. Mohamed Farouk, CEO of ADES Holding Company, commented on the award stating, “Stemming from our proven success in drilling operations across North Africa, this venture solidifies our long strategic partnership with EGPC and is a commitment to operational excellence, growth, and the seamless transfer of our winning formula into the E&P business. The consortium project will allow ADES to expand its service offerings available to its clients, paving the way for the potential entry into a new market with a managed risk approach, and while staying true to our strategy of fiscal prudence.”
“This new venture is a continuation of the ADES legacy, rooted in innovation, operational excellence, and a commitment to achieving success beyond our boundaries. We look forward to continuing to meet our clients’ needs, growing our business, and delivering sustainable returns to our shareholders,” Farouk concluded.
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