APA Corporation Announces Agreement in Principle with Egypt’s Ministry of Petroleum and Mineral Resources and EGPC to Moder...
May 04 2021 - 8:50AM
APA Corporation (Nasdaq: APA) today announced it has reached an
agreement in principle with Egypt’s Ministry of Petroleum and
Mineral Resources (MOP) and the Egyptian General Petroleum
Corporation (EGPC) in support of the MOP’s efforts to modernize the
country’s petroleum sector.
The new Production Sharing Contract (PSC) will consolidate the
majority of the concessions in the Western Desert of Egypt
operated by APA Corporation subsidiary Apache Egypt (“Apache”) into
a single new concession, which will account for more than 90% of
the company’s gross production volumes in Egypt on a barrel of oil
equivalent (BOE) basis. The changes simplify the contractual
relationship with EGPC and include provisions to create a single
cost recovery pool, adjust cost oil and gas and profit oil and
gas participation, facilitate recovery of prior investment, update
day-to-day operational governance, and refresh the term length of
both exploration and development leases. The Apache entity that
will become the sole contractor is owned two-thirds by Apache and
one-third by Sinopec. The new PSC is subject to certain approvals
within the Government of Egypt and ratification by Parliament.
“Egypt’s Minister of Petroleum and Mineral Resources, H.E. Tarek
El Molla, has set important goals to modernize the country’s oil
and gas sector and increase foreign investment. Today’s
announcement follows nearly a year of discussions focused on those
ends, and is great news for Egypt and Apache Egypt,” said John J.
Christmann, APA Corporation CEO and president. “The new agreement
in principle confirms Egypt’s commitment to economic development
and public-private partnerships and will facilitate higher
investment levels by Apache Egypt, resulting in more drilling, more
production and more sustainability projects, while also enhancing
talent development opportunities and delivering cost efficiencies
through the introduction of new technology.”
“The agreement in principle with Apache Egypt is an important
step as we modernize Egypt’s petroleum sector and position our
country as a regional energy hub,” said H.E. Tarek El Molla,
Minister of Petroleum and Mineral Resources, Arab Republic of
Egypt. “It is a win-win for both parties and will help to drive
increases in investment and production to the benefit of
Egyptians.”
About APA
APA Corporation owns consolidated subsidiaries that explore for
and produce oil and gas in the United States, Egypt and the United
Kingdom and that explore for oil and gas offshore Suriname. APA
posts announcements, operational updates, investor information and
press releases on its website, www.apacorp.com. Specific
information concerning Suriname, ESG performance and other
investor-related topics are posted at investor.apacorp.com.
Forward-looking statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “continues,” “could,”
“estimates,” “expects,” “guidance,” “may,” “might,” “outlook,”
“possibly,” “potential,” “projects,” “prospects,” “should,” “will,”
“would,” and similar references to future periods, but the absence
of these words does not mean that a statement is not
forward-looking. These statements include, but are not limited to,
statements about future plans, expectations, and objectives for
operations, including statements about our capital plans, drilling
plans, production expectations, asset sales, and monetizations.
While forward-looking statements are based on assumptions and
analyses made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance,
and financial condition to differ materially from our expectations.
See “Risk Factors” in Apache Corporation’s Form 10-K for the year
ended December 31, 2020, filed with the Securities and Exchange
Commission on February 25, 2021, and in our quarterly reports on
Form 10-Q for a discussion of risk factors that affect our
business. Any forward-looking statement made by APA and/or Apache
Corp. in this news release speaks only as of the date on which it
is made. Factors or events that could cause our actual results to
differ may emerge from time to time, and it is not possible for us
to predict all of them. APA and Apache Corp. undertake no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future development or
otherwise, except as may be required by law.
Contacts |
|
|
|
Investor: |
(281) 302-2286 |
Gary Clark |
Media: |
(713) 296-7276 |
Phil West |
Website: |
www.apacorp.com |
APA-G
APA (NASDAQ:APA)
Historical Stock Chart
From Mar 2024 to Apr 2024
APA (NASDAQ:APA)
Historical Stock Chart
From Apr 2023 to Apr 2024