Ganoub El Wadi Petroleum Company (Ganope) announced that companies that will be awarded 10 exploration blocks in the Red Sea will have the right to sell their share of production locally or export it globally after the Ministry of Petroleum’s approval, Al Borsa News reported.
Red Sea concessions agreement terms state that contractors will directly decide on the price of natural gas with consumers without any interference from Ganope or the government. The agreement further affirms that contractors will not resort to international arbitration in case of any dispute.
According to the agreement, the exploration period will not exceed nine years. Moreover, the first phase awarded to the contractor will be divided into five years for exploration and four years for development. However, companies will have the right to give up their blocks at any time.
It was previously reported that the Ministry of Petroleum will be entitled to take away the awarded block if the foreign partner does not provide a development plan in two years from the discovery date. Additionally, production period has been set at 20 years, with foreign partners obligated to achieve commercial production within four years of the issuance date. If the partner fails to start commercial production on time, the ministry will have the right to take away the block or extend the period by five years, with a maximum of 30 years, or six renewals.