Capricorn's rights over Egyptian Western Desert become official

The Minister of Petroleum and Mineral Resources has signed the consolidated and amended concession agreement, officiating Capricorn Energy's rights over its existing Egyptian Western Desert concession agreements in which it has a 50% participating interest held jointly with Cheiron Oil and Gas Limited

With the Minister’s signature, the new agreement has taken effect for operations to start from 1 July 2025, from which date the merged concession terms became applicable and Capricorn’s work programme obligations commenced.

The agreement also stretches the concession life by up to 20 years with a 10-year development term and two five-year optional extension terms. It comes with amended fiscal terms to promote investment, and merges the existing concessions to increase operational and financial efficiencies.

Randy Neely, chief executive, Capricorn Energy, said, "We are delighted to have received the final signed approval for our consolidation agreement from Minister Badawi. We appreciate EGPC and our operating partner, Cheiron, for their collaboration throughout this process and look forward to working together under the improved terms." 

Earlier in the year, Capricorn had reported liquids-rich development drilling from the Badr El Din (BED) concession. A waterflood programme initiated in the field resulted in increased production levels from Egypt for Capricorn Energy's 2025 report at 20,024 barrels of oil equivalent per day, surpassing the year's guidance of 17000-21000 bopd.