Turkish holding acquires nearly 20% shares of Canada-based energy firm

By Basak Erkalan

A Turkish energy holding, BGN Energy Holding SA, has bought 19.97% of the Canada-based energy firm Mediterra Energy Corporation (MEC).

According to a press release from the holding on Wednesday, acquisition was completed on July 20.

The Turkish holding became the second-largest shareholder in the company.

MEC is conducting development and production activities in Egypt within the framework of the Comombo Concession Agreement and an Exploration and Production Services Contract for the Sudr, Matarma and Asl (SMA) fields, in which it holds a 100% stake.

The company also has a 40% stake in two other exploration fields.

According to an independent assessment report, the SMA fields contain more than 100 million barrels of recoverable oil reserves belonging to MEC.

The Exploration and Production Services Contract for the SMA fields is valid until February 2037.

SMA and Comombo fields currently produce approximately 17,000 barrels of oil per day.

Murat Ozgul, CEO of BGN Energy, stated that they are happy to complete the share purchase process, adding: "With this agreement, BGN Energy has access to the SMA and Comombo fields in Egypt, which have development opportunities and growth potential, and an exciting opportunity for cooperation with the Egyptian Government.

"This is an important milestone for BGN Energy's targets of producing energy in an economically efficient, socially responsible and sustainable manner one step further," he said.

*Writing by Gokhan Ergocun from Istanbul