ADES Inks Agreement to Boost Production in Egyptian Oil Fields with SAR 247.5 Million Investment

ADES Holding Company announced on Wednesday a significant milestone with the signing of a long-term service agreement alongside Suez Oil Company (SUCO) and Shukeir Marine Oil Company (OSOCO). The agreement is structured to enhance operations and production in vital oil brownfields across Egypt. With a duration of 10 years, extendable for an additional 10 years, ADES will spearhead efforts to increase production, paving the way for promising returns.

The company disclosed on Tadawul today its strategic investment plans, detailing a USD 30 million (SAR 112.5 million) commitment to SUCO and USD 36 million (SAR 135 million) to OSOCO over the initial three-year period of the agreement. These investments are specifically earmarked to drive incremental production in the fields.

ADES clarified that the investment amounts and timeline are intricately tied to the levels of incremental production achieved. The consortium, consisting of ADES, SUCO, and OSOCO, will collectively benefit from a share of incremental production ranging between 61% to 72%. This share will be determined based on the total barrels produced and a referenced price per barrel, derived from prevailing market rates. This strategic move underscores ADES’s commitment to maximizing production efficiency and capitalizing on the potential of these oil fields in Egypt.