ADES Holding Company announced that it has been awarded a service contract agreement (LOA) with the Egyptian General Petroleum Corporation (EGPC) - as part of a consortium partnership with a leading local Exploration and Production (E&P) player - to operate and enhance production in key oil brownfields in Egypt, namely the SUCO and OSOCO fields. The new award has a 10-year tenor, extendable for a further 10 years. Through a synergetic effort, the consortium will be dedicated to achieving incremental production levels that surpass the current baseline production at the two brownfields.

Adopting an efficient asset-light model, the project minimizes initial capital outflow, with the majority being operational expenditure (OPEX) related. The consortium will be reimbursed with most of the OPEX incurred during baseline production and is entitled to incremental production returns based on a mutually agreed formula with EGPC. Additionally, ADES will be ideally positioned to capitalize on its extensive fleet operational in Egypt, ensuring economies of scale while maximizing efficiency and returns to shareholders.

Management expects that the contract's financial impact will begin to reflect on the Company's earnings by 2025, with an estimated 5% contribution to EBITDA generated from ADES' Egypt operations.