Repsol (Spain)
and Norsk Hydro (Norway) entered into an agreement whereby Repsol acquires Norsk
Hydro's 63.64% participating interest in and operatorships for the Ras Kanayes
and Ras El Hekma concession areas in the Western Desert in Egypt.
The
assignments of interest and transfers of operatorships are subject to the
consent of Kufpec (Kuwait), holding the remaining 36.36% participating interest
in the concessions, and the approval of the Egyptian General Petroleum
Corporation (EGPC) and the government of the Arabic Republic of
Egypt.
Repsol is the third largest oil company in Egypt, with a net
production of 30,000 barrels per day, from the Khalda, Umbarka, South Umbarka,
Gulf of Suez East and Gulf of Suez West concessions. It began its activities in
Egypt back in 1972, with an exploration and production contract on the Umbarka
field in the Western Desert. Since then, Repsol has considerably increased its
interests in that country through a policy of continuous acquisitions, buying
oil-producing assets and stakes in exploration licences. In other business
areas, last October Repsol signed an agreement with Midor, through which it
became technical operator of a newly built refinery in the free-port of
Alexandria, supplying it with crude oil and feedstocks, and marketing its
products.
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