Capricorn Energy announced on Friday that it is in advanced negotiations with Egypt’s state-owned Egyptian General Petroleum Corporation (EGPC) over terms for gas concession agreements in the Western Desert.
The talks aim to finalize updated terms that could boost investment and production in the region.
Capricorn, alongside its operating partner Cheiron Energy, holds a 50% stake in the Western Desert concessions, which have become a strategic priority for the company.
Capricorn began restructuring its operations last year to concentrate on its Egyptian assets.
In January, the company reported significant progress in negotiations to amend and extend its production-sharing contracts in Egypt.
“An initial agreement has been reached with EGPC, outlining terms that encourage increased investment and production,” Capricorn said in a statement.
The deal includes an improved gas price for incremental production and new discoveries, alongside modernized commercial terms.
The agreement signals a potential shift in Egypt’s energy landscape, reinforcing its position as a key regional gas producer while attracting foreign investment to bolster output and economic growth.
