Russia’s Novatek buys 50% in Egypt offshore gas field

Energy Trade

Russia’s Novatek said Thursday it had bought 50% in a concession agreement for oil and gas exploration and development of the El-Arish offshore deposit in Egypt from Tharwa Petroleum S.A.E.

The other 50% will be held by Egypt’s Tharwa Petroleum. Financial details of the deal were not disclosed. The offshore block with an area of approximately 2,300 square kilometer (888 square miles) is located along the Mediterranean coast to the north of the Sinai. Half of the block lies at depths of up to 50 meters (164 foot) with the remaining area reaching up to 500 meters (1,640 foot). The agreement provides for a minimum exploration period of four years, which will include geophysical studies and the drilling of two wells.

Under the deal, Novatek, Russia’s largest independent gas producer, can extend the exploration period to nine years if preliminary results require further study. The concession agreement provides for a 20-year development period for each commercial discovery with a possible five-year extension. “The El-Arish offshore block is the company’s first international project,” Novatek CEO Leonid Mikhelson said at the signing ceremony in Cairo. “Our participation in the concession is consistent with Novatek’s long-term strategy of expanding its resource base and geographically diversifying its core activities in order to establish a stable base for production growth.” Novatek remains a relatively small player, with only 4% of Russia’s gas production and a geographically concentrated reserve base. Gazprom holds a 19% stake in Novatek, which gives the state-controlled energy giant some influence on the company’s strategy. (


Sharp Rise in Energy Costs Putting Strain on Competitiveness Analysis

Sharp Rise in Energy Costs Putting Strain on Competitiveness

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim... City

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.