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the private oil company then sign the English and Arabic versions
of the agreement, marking the effective date.
Once the English text of the agreement has been signed by
EGPC and the private oil company, the oil company may request
permission from EGPC to commence operations, prior to the
effective date.
Amoco Egypt's 50/50 Income-Sharing Agreements
During the 1960's, the ARE, EGPC, and Amoco Egypt entered
into three concession agreements (the 50/50 agreements): The
Western Desert Concession Agreement in October 1963, the Gulf of
Suez Concession Agreement in February 1964, and the Western
Desert and Nile Valley Concession Agreement in September 1969.
Under the 50/50 agreements, Amoco Egypt and EGPC each had 50-
percent interests in concessions entitling them to explore for
and produce petroleum in specified areas. Amoco Egypt was
required to fund the exploration costs until a commercial
discovery was established or until a certain amount of money had
been expended on exploration efforts. Thereafter, Amoco Egypt
and EGPC shared equally the costs of exploration and production,
as well as sharing the crude oil produced in each concession
area. Under the 50/50 agreements, EGPC and Amoco Egypt each paid
royalties to the ARE on their respective shares of production.
EGPC and Amoco Egypt each paid Egyptian income taxes on their
respective income from each concession agreement.
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Last modified: May 25, 2011