Riyadh – Mubasher: ADES Holding Company has signed a long-term service agreement with the Suez Oil Company (SUCO) and Shukeir Marine Oil Company (OSOCO), subsidiaries of Egyptian General Petroleum Corporation (EGPC).
Under the agreement, ADES Holding is set to operate and enhance production in key oil brownfields in Egypt, according to a press release.
The Saudi company plans to invest $30 million in SUCO and $36 million in OSOCO during the first three years of the agreement increase production.
The agreement’s term is for 10 years and is extendable for an additional 10 years.
The deal’s parties aim to increase the current baseline production at the two brownfields. ADES is entitled to incremental production returns based on a mutually agreed formula.
The consortium's portion of the increase in production will vary between 61% and 72%, depending on the total barrels produced and a referenced price per barrel derived from market quotes.
The operations stipulated in the agreement are set to start within 90 days.
ADES Holding Company recorded net profits of SAR 452 million in 2023, 13.57% higher than SAR 398 million in 2022.
