The basic document of the concession agreement - the PSA - came into force August 30, 1978.
"The extension of the concession agreement to develop the Meleiha block in the Western Desert, ratified by Egypt's parliament, has entered into force. The extension is valid until 2024," the subsidiary of Russia's largest crude producer LUKoil [RTS: LKOH] said in a statement.
The PSA participants are IEOC Production (a subsidiary of Italy's Eni Group) holding 56%, LUKoil Overseas with 24%, and International Finance Company (IFC, a World Bank organization) with 20%.
The project is operated by Agiba, a joint venture of state company Egyptian General Petroleum Corporation (EGPC), IEOC and IFC.
Geological reserves of the Meleiha field, one of the most profitable and efficient producing projects by LUKoil Overseas, are estimated at 90 million tons (662 million bbl), and recoverable reserves at 34 million tons (250 million bbl).
For almost 30 years of development, more than 17 million tons (125 million bbl) of oil has been produced. In 2006, 0.8 million tons (5.88 million bbl) of oil was produced, and this year, plans are to produce 0.84 million tons (6.17 million bbl).