SDX Energy and PICO Petroleum have been granted preliminary approval to extend the drilling period in South Ramadan Concession located in the Gulf of Suez by the Egyptian General Petroleum Corporation (EGPC). The extension also includes the operators spending $23m investments in the project.

According to SDX Energy’s Country Director, Ahmed Moaaz, the company, in conjunction with its partners in the project, PICO Petroleum and the General Petroleum Company (GPC), requested to extend the drilling period until July 2018. This is as a result of inadequate time since the formations of the joint-venture to complete drilling activities.

Even though the official approval was not granted, EGPC gave primary approval to SDX, Moaaz said adding that the company will agree to any new timeframe given by EGPC, Egypt Oil & Gas reports.

Under the agreement which was signed in 2013, the phase 1 of the project was expected to be completed by October 2016. However, the creation of joint venture was delayed until July 2015, affecting the progress of the project.

The South Ramadan Concession is located offshore in the Gulf of Suez approximately 250 kilometers south east of Cairo. GPC holds a 50% stake in the South Ramadan Concession, while SDX and PICO have 12.5% and 37.5% interests respectively.

Anita Fatunji