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Wednesday, 27 March 2019

Egypt puts eased rules for energy companies to use their production share from new Red Sea concessions

Companies awarded concessions in Red Sea bid round can sell at home or abroad: The South Valley Egyptian Petroleum Holding Company (Ganope) will allow companies awarded concessions in the ongoing Red Sea bid round to decide what to do with their share of output, Al Shorouk reports. Companies looking to sell natural gas to third parties inside Egypt will be required to get approvals from Ganope, EGAS, and EGPC, as well as further approvals from the oil minister on the quantities, price, and sales contract. Any exports of natural gas or liquefied petroleum gas (LPG) from these concessions will also require ministerial sign-off on the quantities and price.

Background: Egypt launched a tender earlier this month for 10 oil and gas exploration blocks off the Red Sea coast under a new production sharing contract, according to a Ganope statement (pdf). The Oil Ministry has been reportedly planning to roll out new production sharing contracts with friendlier terms for international oil companies this quarter.

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