Circle Oil offers its stake in North West Gemsa field for sale
Circle Oil Plc, the Irish incorporated oil and gas exploration, development and production company, is looking to sell its 40% stake in North West Gemsa field.
The concessions are operated by a joint production company PetroAmir, whose partners include: EGPC, Zhen Hua (NPIC – 50% working interest and operator); Circle Oil Egypt Limited (40% working interest); and SDX Energy (10% working interest).
The NW Gemsa exploration license, which was converted to Al Amir and Geyad development leases, and lies in the Gulf of Suez area, has been put on offer by the company and the closing date for receiving offers was May 10th, according to Geol. Hassan Hataba, General Manager of PetroAmir.
Geol. Hataba cited difficult economic conditions, like many other oil companies, as the reason for putting up its stake for sale. He added that while several factors, such as declining in oil prices, increasing expenses and the company’s obligations to banks were the reasons for considering the sale.
Geol. Hataba noted that the company fully appreciates the current difficult circumstances in Egypt and the sale was not considered because of special situation to the Egyptian market.
Geol. Hataba pointed out that the company’s Chairman met with the CEO of the Egyptian General Petroleum Corporation EGPC recently, and expressed full understanding of the situation in Egypt and assured him the company’s confidence in receiving all of its payments, based on complete trust in Egypt’s obligations towards its foreign partners.
In early 2008 Circle Oil farmed into the North West Gemsa Block acquiring a 40% interest in the license from Premier. The Al Amir and Geyad development leases have a remaining validity period of more than 12 years with extensions available for continued production. Together they total around 82 km2 and are located roughly 300 km south of Cairo.
The company produces from the field between 5500 to 6000 barrels a day.
(Source: Power News)