Zarubezhneft entered into production sharing agreement for SEREU and EGZ blocks in Egypt

Zarubezhneft entered into production sharing agreement for SEREU and EGZ blocks in Egypt

On December 24, 2019 in Cairo, Zarubezhneft JSC, the Ministry of Oil and Mineral Resources of Egypt, the Egyptian state holding oil company GANOPE and Pacific Oil Limited, have signed a Production Sharing Agreement for the South East Ras El Ush and East Gebel El Zeit blocks.

Blocks are located in the Gulf of Suez at a distance of 10 km from each other. Estimated geological resources at both blocks amount to more than 200 million barrels.

With regard to SEREU, Zarubezhneft plans to drill a prospecting well with the construction of a pilot, main and sidetracks, as well as to re-process and comprehensively re-interpret previously conducted 2D and 3D seismic surveys. Also, to work on the block, the Company is considering the possibility of attracting its own production capacities.

In relation to EGZ block, Zarubezhneft plans to implement work in the exploration and production areas, including the drilling of an exploration well in 2020.

Zarubezhneft considers the development of projects in Egypt to be one of the key areas of its international activities. The fruitful cooperation of companies and government bodies of Egypt, which was established during the negotiation process, contributes not only to achieving high efficiency of participants in the framework of production indicators, but also to strengthening Russian-Egyptian cooperation as a whole.