Deal signed in Egypt PRODUCTION SHARING CONTRAC
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Posted On: 01/20/2022 5:11:11 AM
Deal signed in Egypt
PRODUCTION SHARING CONTRACT FINALIZATION
TransGlobe has signed the Agreement which was ratified into law in December 2021 by the Egyptian parliament, at an official signing ceremony with the Ministry of Petroleum held on January 19, 2022. The Agreement brings together the three producing concessions which in December 2021 had average production of 9,394 Bopd (8,590 Bopd Heavy Crude; 803 Bopd Light and Medium Crude).
The Company has paid the initial modernization payment of $15 million and signature bonus of $1 million as a precondition to the official signing. The Company will be required to pay an additional $10 million on February 1st for each of the next five years beginning on February 1, 2022. In addition, the Company has committed to spending a minimum of $50 million over each five-year period for the 15 years of the primary term (total $150 million). Amounts spent beginning on the Agreement effective date of February 1, 2020 will be included against the capital commitment.
RANDY NEELY, PRESIDENT AND CEO'S STATEMENT
PRODUCTION SHARING CONTRACT FINALIZATION
TransGlobe has signed the Agreement which was ratified into law in December 2021 by the Egyptian parliament, at an official signing ceremony with the Ministry of Petroleum held on January 19, 2022. The Agreement brings together the three producing concessions which in December 2021 had average production of 9,394 Bopd (8,590 Bopd Heavy Crude; 803 Bopd Light and Medium Crude).
The Company has paid the initial modernization payment of $15 million and signature bonus of $1 million as a precondition to the official signing. The Company will be required to pay an additional $10 million on February 1st for each of the next five years beginning on February 1, 2022. In addition, the Company has committed to spending a minimum of $50 million over each five-year period for the 15 years of the primary term (total $150 million). Amounts spent beginning on the Agreement effective date of February 1, 2020 will be included against the capital commitment.
RANDY NEELY, PRESIDENT AND CEO'S STATEMENT
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