Cepsa Expands Exploration Activities to Egypt

CEPSA, in association with IEOC, has been awarded an exploration license after taking part in a bid-round organized by the state-owned oil company, Egyptian General Petroleum Corporation (EGPC), in May 2004. This permit, for a block known as North Bahrein, is located in the Western Desert basin in the northwestern part of the country and covers an area measuring 4,297 square kilometers. CEPSA with have a 25% interest and IEOC, affiliate of ENI will have the remaining 75% stake and will be operator.

The exploration license, with an Initial Exploration Period of three years, will involve conducting a 3D seismic survey and drilling one well.

The definitive award of the contract to the Eni/CEPSA joint venture is subject to initialing of the final version of the Concession Agreement with EGPC and final ratification by the Egyptian Parliament, as is the usual procedure in these cases.

Additionally, CEPSA has acquired a 20% interest in an exploration license for an offshore block known as South Feiran, in the Gulf of Suez, with IEOC being the operator. A seismic survey is scheduled to be performed throughout 2005.

CEPSA's efforts to expand its oil & gas upstream operations represent a further step forward in the company's strategy of diversifying its businesses, with the target of achieving a more equitable balance in earnings contributions from its different segments.