On 10 January 2023, Apex International Energy (Apex), a privately-held independent oil and gas exploration and production company focused on Egypt, announced that it had acquired interests in four concessions in the Western Desert oil producing region of Egypt from IEOC Production B.V. (IEOC), a unit of Eni S.p.A.
Two additional concessions will be acquired by Apex after parliamentary approval of extensions, which is expected in the first quarter of 2023. Apex will now own interests in eight Western Desert concessions (six of the eight concessions will be operated by Apex).
The acquisition is being financed in part through a senior secured borrowing base facility with The Mauritius Commercial Bank Limited (‘MCB’) acting as Mandated Lead Arranger, Modelling Bank and Hedging Bank. Prior to financing this project, MCB applied the Equator Principles to proactively identify and mitigate environmental and social risk.
The Head of Specialized Finance, Mr. Zaahir Sulliman, explained : “This landmark transaction further demonstrates the ability of MCB to develop and offer adapted solutions through a wide range of products and services to suit the needs of its clients. We are delighted to support Apex’s strategy and continue its ongoing rapid growth in the Egyptian energy landscape and to become part of the exciting Egyptian natural gas success story in line with MCB’s gradual energy transition strategy.”
With the existing production of approximately 7,000 barrels per day from the South East Meleiha (SEM) concession (100% operated working interest) this transaction increases Apex production by 65% to 11,500 barrels per day to become the eighth leading oil producer in Egypt. Apex also expects to commence its first natural gas production during the second quarter of 2023.
Apex is led by a management team with vast experience building upstream oil and gas businesses of scale in Egypt and recognized by Egyptian authorities for its rapid production growth, Apex is a leading independent explorer and producer in the Western Desert aiming to further consolidate its acreage position by exploiting organic and inorganic growth opportunities. Equity investors in Apex include affiliates of Blue Water Energy LLP (BWE or Blue Water Energy), and company management, all of whom have deep sector expertise in energy, substantial experience in the MENA region a and strong focus on ESG.
Egypt remains one of the leading oil and gas provinces in the Middle East / North Africa region, and the upstream industry enjoys broad governmental support.