Oil producer Capricorn Energy announced on Friday that it is engaged in advanced discussions with the Egyptian General Petroleum Corp (EGPC).
The talks center on the terms for Western Desert gas concession agreements, potentially unlocking further investment.
This development could lead to a significant increase in gas production within the region.
Capricorn Energy strategically shifted its focus towards its Egyptian assets in the preceding year.
The company currently holds a 50% stake in the Western Desert concession agreements alongside its operating partner, Cheiron Energy.
These ongoing negotiations aim to amend and extend the existing production sharing contracts in Egypt.
According to Capricorn, a preliminary agreement has been reached with EGPC outlining key terms.
These terms are designed to incentivize greater investment and boost production in the Western Desert.
The proposed agreement includes an improved gas price for additional production and new discoveries.
It also features modernized commercial terms intended to foster growth.