Five international oil companies have shown interest in acquiring Circle Oil’s 40% interest in the North West Gemsa concession located in Egypt’s Eastern desert.

These companies including BP, Kuwait Energy, and Rockhopper are currently contending to acquire the stake.

According to a government source, the company is looking to sell of its stake in the concession as the Egyptian General Petroleum Corporation (EGPC) is not willing to pay its overdue debt.

EGPC owes Circle Oil between $10 to 12 million and the latter has refused to be paid in Egyptian pound (EGP).

The source explained that big companies frequently agree to be paid to some extent in EGP or via crude oil, but small oil explorers usually reject EGP and do not have the enough production capacity from their fields to be paid in kind.

International oil companies are now concerned about their long unsettled payments from the Egyptian government as the US Dollar scarcity persists, Energy Egypt reports.

The North West Gemsa Concession comprises of the two development leases Al Amir and Geyad and covers an area of over 260 km². It is located approximately 300 km southeast of Cairo in a partially unexplored area of the Gulf of Suez Basin.

Vegas Oil and Gas operates the concession with a 50% interest alongside Circle Oil Plc with 40% interest and Sea Dragon Energy with 10% interest.

Anita Fatunji