{"id":15007,"date":"2025-05-08T20:22:49","date_gmt":"2025-05-08T20:22:49","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=15007"},"modified":"2025-05-08T21:00:12","modified_gmt":"2025-05-08T21:00:12","slug":"egypt-egpc-approves-consolidation-of-capricorns-8-existing-concession-agreements","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-egpc-approves-consolidation-of-capricorns-8-existing-concession-agreements\/","title":{"rendered":"EGYPT: EGPC Approves Consolidation of Capricorn&#8217;s 8 Existing Concession Agreements"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Capricorn has announced that it has been informed by the Egyptian General Petroleum Corporation (EGPC) that it has approved the consolidation of eight of the Company\u2019s existing Egyptian concession agreements, in which it has a 50% participating interest held jointly with Cheiron Oil and Gas Limited, into a new, single integrated concession agreement. The integrated concession agreement is subject to Egyptian Parliamentary ratification which is expected to take place in 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new concession agreement includes improved commercial terms<sup>1<\/sup>&nbsp;and a refreshed primary development term to support increased investment, for the benefit of all parties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key elements of the merged concession<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Badr El Din (BED), Obaiyed, North Alam El Shawish, North Matruh, Sitra, BED 3, and BED 2 and BED 17 development concessions, along with the North Um Baraka exploration concession, will be consolidated into a single integrated concession providing up to a 20-year life through an initial 10-year term, plus two five-year extensions for the development areas.<\/li>\n\n\n\n<li>Improved fiscal terms to promote increased production of both oil and gas through investment, including:\n<ul class=\"wp-block-list\">\n<li>profit share<sup>2<\/sup>\u00a0of 27-29%,<\/li>\n\n\n\n<li>a merged single cost pool,<\/li>\n\n\n\n<li>40% cost recovery over four years, and<\/li>\n\n\n\n<li>excess cost recovery of 20%.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>An improved gas price of $4.25\/mmbtu for incremental gas produced from existing fields and new discoveries agreed to promote increased gas production.<\/li>\n\n\n\n<li>Four additional blocks will be incorporated into the BED 17 development area.<\/li>\n\n\n\n<li>The direct award of two open exploration areas adjacent to existing acreage will be added to the integrated concession which will require the drilling of 11 gross exploration wells.<\/li>\n\n\n\n<li>These integrated concession improvements are expected to increase internally estimated working interest (WI) unrisked best estimate contingent resources volume to 332 mmboe, of which up to approximately 20 mmboe, subject to risking and external audit, are expected to convert to 2P reserves post ratification, with further incremental conversions expected at year end and during our annual reserves reviews going forward.<\/li>\n\n\n\n<li>In exchange, post-ratification, for its 50% WI share in the integrated concession the Company will pay EGPC a signature bonus of $10m, with two further bonus payments of $5m on the first and second anniversaries of the signature date (total $20m). These bonuses are expected to be paid through the Company\u2019s receivables balance with EGPC.<\/li>\n\n\n\n<li>A commitment to implement a predominantly drilling-based work program in the first five years amounting to ~$100m, WI share.<\/li>\n\n\n\n<li>In addition to costs incurred under the new integrated concession, the Company has the right to recover 70% of the carried forward cost pool balance transferred from the original concessions, plus 100% of any unrecovered costs transferred from the original concessions and amortised as per the relevant original concession agreement.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Randy Neely, Chief Executive, Capricorn Energy PLC said:<\/strong>&nbsp;<em>\u201cThis agreement marks a key milestone in unlocking further value in our Egyptian Western Desert asset base. The three partners: EGPC, Cheiron and Capricorn have put in significant time and effort to construct a business case that allows all parties to benefit. With the improved terms and consolidation of the development leases, the joint venture partners will be able to justify increased investment to unlock significant contingent resources, leading to increased production and reserves for the benefit of all stakeholders. The development potential of these assets is fully capable of being funded by cashflows generated in Egypt.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>With the successful outcome of this milestone in sight, we, along with our partners, will now begin the work to achieve a similar outcome for the Alam El Shawish West (AESW) joint venture.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>We believe this agreement is a very important step in restoring Capricorn as a premier small-cap energy company. In addition to our achievements in Egypt, we continue to actively evaluate material opportunities in the UK North Sea. Combined, these initiatives will make Capricorn significantly more sustainable as a business and attractive as an energy investment.\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capricorn has announced that it has been informed by the Egyptian General Petroleum Corporation (EGPC) that it has approved the consolidation of eight of the Company\u2019s existing Egyptian concession agreements, &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/egypt-egpc-approves-consolidation-of-capricorns-8-existing-concession-agreements\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":15008,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7446,11],"tags":[11980,11987,11986,11985,9297,11979,709,7711,11984,11983,11988,11981,11982,11989],"class_list":["post-15007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-north-africa","category-top-news","tag-badr-el-din-bed","tag-bed-17","tag-bed-2","tag-bed-3","tag-capricorn","tag-cheiron-oil-and-gas","tag-egypt","tag-egyptian-general-petroleum-corporation","tag-north-alam-el-shawish","tag-north-matruh","tag-north-um-baraka","tag-obaiyed","tag-sitra","tag-western-desert-asset","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/05\/capricon-map_2024-10-08.jpg?fit=782%2C512&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3U3","jetpack-related-posts":[{"id":15788,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-capricorn-announces-ministerial-signing-of-merged-concession-agreement\/","url_meta":{"origin":15007,"position":0},"title":"EGYPT: Capricorn Announces Ministerial Signing of Merged Concession Agreement","author":"Samuel Kamau Mbote","date":"May 20, 2026","format":false,"excerpt":"Capricorn announces that the Minister of Petroleum and Mineral Resources has signed the consolidated and amended concession agreement covering eight of the Company's existing Egyptian Western Desert concession agreements in which it has a 50% participating interest held jointly with Cheiron Oil and Gas Limited (Cheiron). With the Minister\u2019s signature,\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2026\/05\/capricorn-updated-map-15x.webp?fit=1200%2C786&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2026\/05\/capricorn-updated-map-15x.webp?fit=1200%2C786&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2026\/05\/capricorn-updated-map-15x.webp?fit=1200%2C786&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2026\/05\/capricorn-updated-map-15x.webp?fit=1200%2C786&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2026\/05\/capricorn-updated-map-15x.webp?fit=1200%2C786&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":15318,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-capricorn-receives-50m-from-the-egyptian-general-petroleum-corporation\/","url_meta":{"origin":15007,"position":1},"title":"EGYPT: Capricorn\u00a0Receives $50m from the Egyptian General Petroleum Corporation","author":"","date":"October 26, 2025","format":false,"excerpt":"Capricorn\u00a0has announced\u00a0that it has\u00a0received $50m from the Egyptian General Petroleum Corporation (EGPC). Since 30 June 2025, the Company has received a total of $102m, and its accounts receivable is approximately $115m (H1\u201925 - $182m) (excluding expected credit loss adjustments). The Company expects to receive further material payments against arrears before\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/10\/capricorn-energy-plc-logo-1200x675-1.png?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/10\/capricorn-energy-plc-logo-1200x675-1.png?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/10\/capricorn-energy-plc-logo-1200x675-1.png?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/10\/capricorn-energy-plc-logo-1200x675-1.png?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/10\/capricorn-energy-plc-logo-1200x675-1.png?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":15256,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-pharos-energy-receives-approval-from-egpc-for-a-new-consolidated-concession-agreement\/","url_meta":{"origin":15007,"position":2},"title":"EGYPT: Pharos Energy Receives Approval from EGPC for a new consolidated Concession Agreement","author":"","date":"September 24, 2025","format":false,"excerpt":"Pharos Energy has announced that it has received approval from the Executive Board of the Egyptian General Petroleum Corporation (EGPC) for the consolidation of the El Fayum and North Beni Suef Concession Agreements into a new consolidated concession agreement. Pharos will retain a 45% working interest in the Consolidated Concession,\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/01\/Egypt-Pharos-Energy.png?fit=1200%2C661&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/01\/Egypt-Pharos-Energy.png?fit=1200%2C661&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/01\/Egypt-Pharos-Energy.png?fit=1200%2C661&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/01\/Egypt-Pharos-Energy.png?fit=1200%2C661&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/01\/Egypt-Pharos-Energy.png?fit=1200%2C661&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":10455,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-eni-merges-meleiha-meleiha-deep-into-the-merged-meleiha-concession\/","url_meta":{"origin":15007,"position":3},"title":"EGYPT: Eni Merges Meleiha &#038; Meleiha Deep into the Merged Meleiha Concession","author":"","date":"June 17, 2021","format":false,"excerpt":"Eni has signed an agreement with the Arab Republic of Egypt, the Egyptian General Petroleum Corporation (EGPC) and Lukoil for the merger of the concessions of Meleiha and Meleiha Deep, in Egypt's Western Desert, and their extension to 2036, with the possibility of reaching further to 2041. The agreement, which\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11063,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-pharos-energy-receives-cabinet-approval-on-the-el-fayum-amendment\/","url_meta":{"origin":15007,"position":4},"title":"EGYPT: Pharos Energy Receives Cabinet Approval on the El Fayum Amendment","author":"","date":"November 1, 2021","format":false,"excerpt":"Pharos Energy has announced Egyptian Cabinet approval of the Third Amendment of its El Fayum Concession Agreement. The approved terms, already announced on 30 March 2021, include both an increase of the cost recovery petroleum percentage and an extension of the exploration term of three and a half years. Ed\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/07\/Egypt-El-Fayum.jpg?fit=806%2C585&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/07\/Egypt-El-Fayum.jpg?fit=806%2C585&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/07\/Egypt-El-Fayum.jpg?fit=806%2C585&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/07\/Egypt-El-Fayum.jpg?fit=806%2C585&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":15121,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-egpc-awards-seven-new-exploration-and-production-blocks\/","url_meta":{"origin":15007,"position":5},"title":"EGYPT: EGPC Awards Seven New Exploration and Production Blocks","author":"","date":"June 24, 2025","format":false,"excerpt":"As part of the Ministry of Petroleum and Mineral Resources - Egypt ' plan and strategy to attract new investments in exploration and production, and to support current efforts to increase production, the evaluation of submitted offers for seven new exploration and production blocks affiliated to the Egyptian General Petroleum\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/06\/Egypt.jpeg?fit=1200%2C847&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/06\/Egypt.jpeg?fit=1200%2C847&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/06\/Egypt.jpeg?fit=1200%2C847&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/06\/Egypt.jpeg?fit=1200%2C847&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/06\/Egypt.jpeg?fit=1200%2C847&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/15007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=15007"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/15007\/revisions"}],"predecessor-version":[{"id":15009,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/15007\/revisions\/15009"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/15008"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=15007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=15007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=15007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}