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Image used for illustrative purpose. Workers build a pipeline for transporting natural gas to Israel in north Delta Nile, 300 km (186 miles) north of Cairo.
Oil producer Capricorn Energy said on Friday it is in advanced talks with state-owned Egyptian General Petroleum Corp over terms for Western Desert gas concession agreements, which may lead to increased investment and production in the region.
Capricorn started revamping its strategy to focus on its Egyptian assets last year. The company and its operating partner Cheiron Energy each hold a 50% participating interest in the Western Desert Egyptian concession agreements.
In January, Capricorn said its ongoing negotiations to amend and extend terms of production sharing contracts in Egypt were progressing well.
"An initial agreement has been reached with EGPC, which outlines terms to promote increased investment and production, including an improved gas price for incremental production and new discoveries alongside modernised commercial terms," Capricorn said in a statement.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Shilpi Majumdar)
