2 minutesHellenic Petroleum S.A., following an international tender, has decided to transfer part of its rights in the West Obayed Concession for the exploration and production of hydrocarbons in the Western desert of Egypt to Vegas Oil & Gas S.A.. The two companies will work together in this area (VEGAS 70% - HELPE 30%) with VEGAS being the Operator. This partnership will continue the exploration activities in West Obayed Concession including drilling of at least two wells by the end of June 2012.
Hellenic Petroleum S.A. signed a Concession Agreement with the Egyptian General Petroleum Corporation in June 2007 for the exploration and production of hydrocarbons in the West Obayed area with specific work program commitments. HELPE has made a considerable investment in the area, including the acquisition and reprocessing of 2D and 3D seismic data and the drilling of two wells with promising results for the prospectivity of the area. The existing agreement with the Egyptian State, in the case of hydrocarbons production, provides for the recovery of investments from the proceeds of petroleum produced and sold.
Hellenic Petroleum has decided to sell part of its equity in the concession with a target to obtain the added value and spread the associated technical and investment risks.
The two companies will join efforts in the West Obayed concession and will continue their other activities in Egypt. Taking into account HELPE’s experience in the region and the successful track record of VEGAS with numerous recent discoveries of hydrocarbons in Egypt, coupled with the financial strength of both companies, the partnership will successfully continue with exploration and production activities in the area.
The transaction is subject to approval of the relevant Egyptian Authorities.
Note to the Editors:
VEGAS OIL & GAS S.A. was founded in 2003 and since then it has been very successful in petroleum exploration and production. The company is currently participating in three concessions in Egypt, in the Western and Eastern Desert, which were awarded to Vegas through international licensing rounds conducted by the Egyptian authorities. In all three concessions, Vegas as Operator made significant discoveries of oil and gas. Shell, GDF Suez, TransGlobe Energy, Circle Oil and Sea Dragon Energy are currently partners of Vegas in these three concessions.
Founded in 1998, HELLENIC PETROLEUM is one of the leading energy groups in South East Europe, with activities spanning across the energy value chain and in ten countries. Its shares are primarily listed on the Athens Exchange, and its market capitalisation amounts to about €1.7bn. The Company is active in exploration and production of hydrocarbons participating in joint ventures in Greece, Egypt and Montenegro.