TransGlobe Energy agreed to acquire a 100% working interest in the West Bakr Concession agreement in the Arab Republic of Egypt from The Egyptian Petroleum Development Co Ltd for $60 million. EPEDECO is a joint venture established by a consortium including INPEX and Mitsui & Co.
The produced oil ranges from 17° to 20° API and is pipeline connected to the Ras Gharib terminal on the coast, which is the same export terminal that West Gharib production is currently trucked to. The West Bakr blend has historically received Brent minus 25% pricing.
The West Bakr Concession production sharing terms are as follows: cost oil of 30%, production sharing of 15% to the Contractor and 85% to the Government, excess cost oil goes 100% to the Government, capital investments are amortized over five years and operating expenses are amortized in the quarter incurred. All Government royalties and taxes are paid out of the Government’s share of production sharing oil.