ADES secures contract to boost oil production in Egyptian brownfields

CAIRO - 13 December 2023: ADES Holding has been granted a significant service contract agreement (LOA) by the Egyptian General Petroleum Corporation (EGPC). The agreement entails the operation and enhancement of production in key oil brownfields in Egypt, specifically the SUCO and OSOCO fields. ADES Holding will collaborate with a local partner specializing in oil exploration and production as part of a consortium.

According to a statement released by ADES Holding to the Saudi Exchange Tadawul, the new contract has a duration of 10 years and can be extended for an additional 10 years.

While the financial details of the agreement were not disclosed, the company anticipates that the project's returns will positively impact its profits by 2025. ADES Holding expects the project to contribute approximately 5% of its earnings before interest and taxes.

The primary objective of the consortium is to significantly increase production levels beyond the current baseline production at the SUCO and OSOCO brownfield sites. By employing an efficient and asset-light model, the project aims to minimize the initial capital outflow, with operational expenditure (OPEX) constituting the majority of expenses.