APA Corporation announced that the Egyptian Parliament has approved the agreement to modernize and consolidate its current Production Sharing Contracts (PSCs) with the government.

The PSC is now pending presidential ratification, which is the next and final step for the revised PSC terms to take full legal effect.

It is worth noting that the agreement was reached in principle with Egypt’s Ministry of Petroleum and Mineral Resources (MOP) and the Egyptian General Petroleum Corporation (EGPC). Furthermore, the agreement terms included consolidating the majority of the concessions operated by APA’s subsidiaries operating in Egypt (“Apache”) into a single new concession, simplifying the contractual relationship with EGPC as well as other provisions.

“This is the culmination of nearly two years of work with Egypt’s Ministry of Petroleum and Mineral Resources and EGPC to modernize the economic and operational terms of our PSC. The changes will return Egypt to being the most attractive investment opportunity in APA’s entire global portfolio,” said John J. Christmann IV, APA’s CEO and president.

“In anticipation of the approval, we had already increased our drilling rig count to 11 in 2021. Upon final approval, our investment activity will continue to grow into 2022, returning Egypt to a growing production profile and helping to advance the country’s position as a regional energy hub,” he added.