Egypt
Shell Egypt Signs 2 Agreements for Exploration in Western Mediterranean
Published on : 2021-03-23
Minister of Petroleum and Mineral Resources, Tarek El Molla, signed two new agreements with Shell Egypt for investments in the area of the Herodotus Basin in deep waters in the western Mediterranean.
Molla added in a statement, Monday, that the two agreements are in the concessions of North Marina and North Cleopatra Marine, whereby Shell Egypt, through BG Delta Limited, which is wholly owned by the company, acquires 63 percent (in charge of operations), in partnership with Noble Energy Egypt, A subsidiary of Chevron Corporation, (27 percent), and Tharwa Petroleum Company (10 percent), as the granted sectors cover an area of 6,477 square kilometers.
He explained that the two agreements are a continuation of Shell’s strategy by focusing its investments in Egypt in the marine concession areas and deep waters, in order to achieve an increased development in the value-added chain of natural gas, especially as the western Mediterranean concession areas are promising.
Chairman of Shell Companies in Egypt, Khaled Qassem, said that the new explorations are in line with Shell’s strategy to expand its business with gas projects in marine and deep-water areas in Egypt in order to achieve the country's goals of sustainable development, as the company intensifies its multiple exploration activities in all Egyptian sites to contribute In transforming the region into a regional energy center.
He pointed out that drilling is planned to take place in the western Mediterranean region during the second exploration phase, which is expected to start within 3 years from the date of ratification and will last for 3 years.
The company's commitment to work in the first exploration stages also includes the use of seismic survey technology, as well as exploration and exploration operations in the later stages.
Earlier in March, Shell Egypt and one of its affiliates are engaged in a sales and purchase agreement (SPA) with a consortium made up of subsidiaries of Cheiron Petroleum Corporation and Cairn Energy PLC for up to $926 million, for their upstream assets in Egypt’s Western Desert.
The company clarified in a statement Tuesday that the SPA worth $646 million with additional payments of up to $280 million between 2021 and 2024, contingent on the oil price and the results of further exploration.
The deal is expected to complete in the second half of 2021, it added noting that the transaction is subject to government and regulatory approvals.
