Saudi ADES Holding has been awarded a service contract agreement (LOA) with the Egyptian General Petroleum Corporation (EGPC) to operate and enhance the productivity of two oil fields in Egypt.
Under the terms of the agreement, ADES will ally with a local Egyptian partner specializing in oil exploration and production.
The focus will be on modernizing and boosting the output of oil brownfields; SUCO and OSOCO. This ten-year contract, with an option for renewal, aims to exceed current oil production levels.
Mohamed Farouk, CEO of ADES Holding, commented: “The consortium project will allow ADES to expand its service offerings available to its clients, paving the way for the potential entry into a new market with a managed risk approach, and while staying true to our strategy of fiscal prudence.”
“This new venture is a continuation of the ADES legacy, rooted in innovation, operational excellence, and a commitment to achieving success beyond our boundaries. We look forward to continuing to meet our clients’ needs, growing our business, and delivering sustainable returns to our shareholders,” Farouk concluded
ADES anticipates this project will significantly contribute to its profits by 2025, expecting about 5% of its total earnings before interest and taxes to stem from this venture. The project is also set to benefit from Egyptian labor, enhancing efficiency and maximizing returns for shareholders.
ADES Holding, a leading provider of drilling and production services in the oil and gas sector in Saudi Arabia, plays a pivotal role in this venture.
The company’s involvement underscores the growing economic ties between the two countries, with Saudi investments in Egypt amounting to $6.3 billion across 7444 projects in various sectors. Conversely, Egyptian investments in Saudi Arabia total $1.6 billion in 2027 projects, spanning several industries.
Trade between the two nations reached approximately $5.67 billion in 2022, up 23.9% from 2021.
