The International Egyptian Oil Company's licence for the Ras Qattara concession in Egypt has been extended until March 28, 2023, Croatia's oil company Ina said on Tuesday.

The extension was approved by the state-owned Egyptian General Petroleum Corporation (EGPC) and Egypt’s oil ministry and parliament.

Ras Qattara, of which Ina owns a minority 25 percent stake, with Italy’s oil company Eni owning the remaining 75 percent, is one of Ina’s most profitable properties in Egypt. The licence extension will enable the continued production of oil at the site, including the drilling of new wells.

The licence extension has added value, the company said, as it means Ina continues to maintain good partner relations with Egypt, which could result in new business opportunities in that country and elsewhere in the world.

Ras Qattara covers an area of 104 square kilometres in Egypt’s Western Desert, located about 120 kilometres west of the capital Cairo. Eni signed a contract for it in 1989 via its Egyptian subsidiary IEOC. Ina became a partner in the venture in 1990, taking over a 25 percent stake in IEOC.

Oil production at the site kicked off in 1994 and 69 million barrels of oil have been produced to date, including Ina’s 7.5 million.

The Ina Group has been engaged in exploratory drilling and oil production in Egypt since 1989. Ina currently holds four concessions in the country, operating one (East Yidma) and partnering up with other oil companies at three locations (Ras Qattara, West Abu Gharadig, and North Bahariya).

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