Following an international tender, Greece’s largest refining company, Hellenic Petroleum (HELPE) 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 Egypt’s Vegas Oil & Gas. 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 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 programme 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 potential of the area.
The existing agreement with the Egyptian state, in the case of hydrocarbon production, provides for the recovery of investments from the proceeds of petroleum produced and sold.
The two companies will join efforts in the West Obayed concession and will continue their other activities in Egypt. Both companies will continue with exploration and production activities in the area.
