Business
Cabinet approval of the El Fayum Amendment
Cabinet approval of the El Fayum Amendment.
About this update from Pharos Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8181Q\n Pharos Energy PLC\n 01 November 2021\n \n \n \n \n \n \n \n 01 November 2021\n \n \n \n \n \n Pharos Energy \n \n \n (\"Pharos\" or the \"Company\" or, together with its subsidiaries, the \"Group\")\n \n \n Cabinet approval of the El Fayum Amendment \n \n \n Pharos Energy plc,\n an independent oil and gas exploration and production company, is pleased to announce 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.\n \n \n \n \n \n \n *as announced on the website of the Prime Minister of Egypt.\n \n \n \n \n \n \n Ed Story, President and Chief Executive Officer, commented:\n \n \n \n \n \n \"We are delighted that the El Fayum Third Amendment has been approved by the Egyptian Cabinet, which encourages investment into this Concession to increase production rates for the mutual benefits of Egypt and Pharos and our partners.\n \n \n The enhancements enshrined in the Third Amendment are set to deliver a lower break-even price per barrel and enhanced, earlier cash flow from the producing fields.\n \n \n Approval of this Amendment will now move forward to its final phase, ratification by the Parliament and signature of the President.\"\n \n \n \n \n \n \n \n \n The Prime Ministerial announcement stated that, in its meeting on Thursday 28 October\n ,\n the Egyptian Cabinet approved amendments to the fiscal terms of five petroleum concession agreements, including El Fayum. These amendments are designed to encourage new investments in existing exploration and development areas, aimed at maintaining and increasing production rates and \n optimising\n resources, to the mutual benefit of Egypt and the international companies.\n \n \n \n \n \n The \n El Fayum Third Amendment \n agreement, which includes an increase of the cost recovery petroleum percentage and a three-and-a-half-years extension to the exploration licence term, was approved by the\n Egyptian General Petroleum Corporation's (EGPC) Main Board in March 2021. The Cabinet approval obtained on Thursday is a key milestone in the process towards Parliamentary approval, before final Preside...