Saudi ADES Holding Company, has signed a long-term agreement to invest $66 million in the oil fields of the Suez Oil Company (SUCO) and the Offshore Shukeir Oil Company Co (OSOCO), both subsidiaries of the Egyptian General Petroleum Corporation.

ADES elaborated that it plans to invest USD 30 million (SAR 112.5 million) in SUCO and USD 36 million (SAR 135 million) for OSOCO during the first three years of the agreement in order to achieve incremental production.

This comes as part of a consortium partnership with a leading local Exploration and Production (E&P) player to operate and enhance production in key oil brownfields in Egypt.

“Through a synergetic effort, the consortium will aim to achieve incremental production levels that surpass the current baseline production at the two brownfields, with ADES being entitled to incremental production returns based on a mutually agreed formula,” it stated.

ADES revealed that the agreement duration is for 10 years and is extendable for an additional 10 years, noting that the investment timeframe and amounts are linked to the levels of incremental production achieved.

The consortium’s share of incremental production will range between 61 percent to 72 percent depending on the total barrels produced as well as a referenced price per barrel based on market quotes, it added.

The commencement of operations is expected within 90 days, according to the company.

ADES, which is specialized in providing international drilling services for the oil and gas sector, owns 87 drilling platforms spread across eight countries, including 38 land-based drilling platforms and 46 offshore drilling platforms.