York­town to sell Egypt-based oil, gas com­pany Mer­lon In­ter­na­tional

The Daily News Egypt - - News - By Mo­hamed Samir

The New-York-based pri­vate eq­uity firm York­town Part­ners is re­port­edly plan­ning to sell its Egypt-fo­cused oil and gas com­pany Mer­lon In­ter­na­tional, Reuters re­ported on Sat­ur­day.

Ac­cord­ing to the re­ports, the firm aims to raise up to $400m, and the sale will be run by Cit­i­group, with ex­pected bids planned to be con­cluded by July.

Mer­lon cur­rently op­er­ates in Egypt’s Western Desert, in the Fay­oum con­ces­sion, with a pro­duc­tion rate of around 7,900 bar­rels of oil equiv­a­lent per day in 2017 from more than 50 wells.

The com­pany has been op­er­at­ing in Egypt since the early 1980s. All the com­pany’s oil and gas as­sets are cur­rently lo­cated in the Fay­oum con­ces­sion area in the Western Desert. In Au­gust 2017, a new agree­ment was signed be­tween Mer­lon and the Egyp­tian Gen­eral Pe­tro­leum Cor­po­ra­tion for another $6m in­vest­ments in the Fay­oum con­ces­sion.

The Fay­oum con­ces­sion has es­ti­mated re­cov­er­able re­sources of around 125-150m bar­rels. Ac­cord­ing to Mer­lon, 18m bar­rels were pro­duced in 2017, of which Egypt re­ceived 1.6m bar­rels, in ac­cor­dance with the terms of the pro­duc­tion-shar­ing con­tract with the gov­ern­ment.

Egypt’s oil and gas sec­tor has been boom­ing in re­cent years, es­pe­cially af­ter the dis­cov­ery of the gi­ant Zohr field, as well as plenty of other off­shore gas fields in the Mediter­ranean.

The Min­istry of Pe­tro­leum aims to turn Egypt into a ma­jor en­ergy hub, through re­forms and lib­er­al­is­ing the gas sec­tor.

Mer­lon op­er­ates in Egypt’s Western Desert, in the Fay­oum con­ces­sion, with a pro­duc­tion rate of around 7,900 bar­rels of oil equiv­a­lent per day in 2017

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