OREANDA-NEWS. OJSC NOVATEK announced  it had acquired a 50% working interest in the concession agreement for oil and gas exploration and development at the El-Arish offshore block in Egypt from Tharwa Petroleum S.A.E. The remaining 50% working interest is held by Tharwa Petroleum S.A.E.

According to the company's press-service, the offshore subsea block, comprising an area of approximately 2,300 square kilometers, is located along the Mediterranean coast and is adjacent to the north coast of the Sinai. Half of the block lies at depths of up to 50 meters with the remaining area reaching depths of up to 500 meters.

The concession agreement provides for a minimum exploration period of four years which will include undertaking geophysical studies of the concession block as well as the drilling of two wells. NOVATEK will have the opportunity to extend the exploration period to nine years if preliminary results require further study. The concession agreement provides for a twenty year development period for each commercial discovery with a possible five year extension.

The El-Arish offshore block is the Company's first international project. "Our participation in the concession is consistent with NOVATEK's long-term strategy of expanding its resource base and geographical diversification of its core activities in order to establish a stable base for the production growth," commented NOVATEK's CEO Leonid Mikhelson at the signing ceremony in Cairo.