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Naftogaz reportedly failed to sell its Egyptian assets - Daily News Egypt

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Naftogaz reportedly failed to sell its Egyptian assets

The Ukrainian company couldn’t find an investment bank to advise on finding potential buyers

Ukrainian oil and petrol company Naftogaz has reportedly failed to find an investment bank to advise on selling its Egyptian assets, Russian Interfax news agency reported.

The company has annulled the second round of bidding, as less than two bids were submitted.

According to a report in the ProZorro e-procurement system, only E&Y LLC took part in the bidding.

The expected cost of the deal is around $1.5 million. The services were to be delivered before 31 December, 2018.

The company planned to select the winner of the bids, taking into account the price and the number of finalized M&A deals in the oil and petrol sector in European countries, the Middle East, and North Africa in the past five years.

Naftogaz board chairperson Andriy Kobolev said at the end of 2016 that the holding is mulling how to sell its assets in Egypt, as this business does not bring a large profit due to oil price drops.

Naftogaz, through its subsidiary Zakordonnaftogaz, explores and operates two oil and petrol blocks in the southeastern desert of Egypt: Wadi El Mahareeth and Wadi El Mahareeth.

Work on these deposits, the projected resources of which exceed 360 million tonnes of oil, is carried out on the basis of concession agreements signed on 7 February 2012 between Zakordonnaftogaz on behalf of Naftogaz and the government of the Arab Republic of Egypt and the GANOPE state oil company.

In 2015, the company increased production of oil and condensed it in Egypt by 20.7% compared to 2014, to 318,000 tonnes (2.33 million barrels).

Commercial petrol production was 192 million cubic metres, which is 4.8 times more than in 2014.

Topics: assests Gas Naftogaz

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