Edison International to buy EGPC Abu Qir share

Italian Edison entered negotiations with the Egyptian authorities to sell its share of the gas produced from the North Abu Qir field, which Edison won with a Signature Bonus of $1.4 billion.

Edison plans to sell its share to Edison International under the form of "Netback Pricing", as both Edison and the Egyptian General Petroleum Corporation (EGPC) contract allows Edison to sell its share after paying the fees of liquification and transportation. Hence, if the Egyptian authorities aim to buy it, they will have to pay the international price of $6 for the one million BTU, which is remotely more than the original price that is worth $2.65 for the one million BTU. Edison will process the natural gas in Damietta and Edeko.

It is expected that EGPC’s share will be sold with the company’s split to Edison International.

Lately, Edison was met with disappointment after hitting a dry well in the shallow water, but the company is proceeding to drill in the deep water to extract gas from it, which promoted the company to undertake the mentioned negotiations with the Egyptian authorities to offset a portion of its loss in the dry well.

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