Egyptian Concession Agreement

» Posted by on Apr 9, 2021 in Uncategorized | 0 comments

The issue of unity is also a problem under the current model agreement. The determination of the unit (Article IV) of the Egyptian model concerns reservoirs that extend to adjacent areas held by the same contractor. Neither the model agreement nor Bill 66 of 1953 (as amended) can deal with other cases of unitary formation. This means that neither the law nor the model of agreement for the instance of a reservoir that extends over an adjacent territory that is not granted to any contractor (open space) or to an adjacent area that extends beyond national borders in another state are not eligible. The problem is how the oil sector will deal with these cases when there are no more provisions. This will be a brief overview of the legal aspects that need to be addressed in the imer oil sector in Egypt. Finally, I believe that the oil sector must transform the production allocation model into a service contract model, particularly in the area of development leases, which will be abandoned at the end of the current agreements. This will ensure the complete development and production of these areas. The deepwater exploration concession contract model should be modified to reflect an income tax relative to the current rate, in addition to the subsequent payment of applicable royalties. Meanwhile, Eni plans to bring its total crude oil and natural gas production from its various concessions to 600k boe/d, sources from Eni-EGPC JV Belayim Petroleum Company (Petrobel) say Amwal Al Ghad. The Zohr and Nooros gas fields currently account for the bulk of the company`s natural gas production, while crude oil production is concentrated in the Gulf of Suez and Mediterranean concessions.

The sources did not announce the timetable for these new production targets. From a legal point of view, there are a number of questions about standard concession agreements. The first point concerns the fact that the name of the Egyptian concession contract is not compatible with the legal nature of the agreement itself. There are three main types of oil exploration and production agreements in the world. The first type is a production-sharing agreement in which the state retains ownership of all natural resources, in the case of Egypt oil and natural gas. The contractor must recover all expenses and expenses after the completion of commercial production. Production is distributed according to the percentages set out in the agreement between the state and the contractor. Mining rights are retained by the state or granted to its national corporation, while the contractor has no mineral rights. The most important issue is taxation and royalties. Tangential, it should be noted that, from a legal point of view, royalties are not a form of tax, but a sum that must be paid to the state for the exploitation and production of mineral resources. The national company supports and pays royalties and income tax on its production share. The second form of the agreement is the concession agreement.

In such an agreement, the contractor has the right to recover all oil below the surface or from production.

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