Apex International Energy buys interests in 6 concessions in Western Desert

Updated 1/10/2023 12:00:00 PM

Arab Finance: Apex International Energy has acquired interests in four oil concessions in Egypt’s Western Desert from IEOC Production B.V., a unit of Italy’s Eni, according to a press release sent to Arab Finance via email on January 10^th.

The oil and gas exploration and production company is set to acquire two additional concessions, subject to parliamentary approval of extensions; expected in the first quarter (Q1) of 2023.

As per the sale and purchase agreement sealed with IEOC, Apex took over all IEOC’s interests in the Ras Qattara, West El Razzak, and East Kanayis concessions.

The West Abu Gharadig concession will be purchased once the extension deal is approved.

Accordingly, Apex will be the operator of each concession through Farah Petroleum Company (PetroFarah), the joint venture (JV) of Apex and the Egyptian General Petroleum Company (EGPC).

Apex also purchased a 25% interest in the East Obaiyed concession from IEOC, and will buy a 25% interest in the South West Meleiha concession after the extension contract is approved, with IEOC remaining as the operator.

The acquisition is being partially financed through a senior secured borrowing base facility arranged by the Mauritius Commercial Bank Limited.

Moreover, Apex and IEOC have been recently awarded the East Siwa exploration concession in the Western Desert; each holding a 50% interest and Apex serving as the operator.

The EGPC has already approved the East Siwa concession agreement, which is expected to be agreed upon by the parliament and signed into law in Q2 2023.

Furthermore, Apex is aiming to commence its first natural gas production in Q2 2023, with the Faramid Development Lease in the East Obaiyed concession expected to come online.