Novatek acquires interest offshore Egypt

Offshore staff

MOSCOW --OAO Novatek has acquired a 50% working interest in the El-Arish concession offshore Egypt from Tharwa Petroleum S.A.E. The remaining 50% working interest is held by Tharwa Petroleum S.A.E.

The company says this offshore block, covering some 2,300 sq km (888 sq mi), is in the Mediterranean adjacent to the north coast of the Sinai. Half of the block is in 50 m (164 ft) water depth with the remaining area reaching depths of up to 500 m (1,640 ft).

The concession agreement provides for a minimum exploration period of four years, extends the exploration period to nine years if preliminary results require further study, and 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." said Leonid Mikhelson, Novatek's CEO, 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."

9/28/2007