Shell announces a gas discovery in Egypt’s Western Desert

Cairo, 31 August 2016 - Shell has made a gas discovery in its North Alam Al Shawish exploration concession in Egypt’s Western Desert. The North Alam Al Shawish exploration block was awarded in 2012 and signed at the end of 2013 with the Egyptian Ministry of Petroleum and the Egyptian General Petroleum Corporation (EGPC), following a competitive international bid round.

Aidan Murphy, Shell’s Vice President Egypt, Country Chairman & Managing Director, said “We are very pleased with the results from the BTE-2 well, where the preliminary discovered volumes are around 0.5 Trillion Cubic Feet (TCF) gas in place with further potential, making it one of the biggest gas discoveries in the Western Desert in the past years.”

“The BTE-2 discovery results from the application of leading technology in both the seismic acquisition and processing, as well as drilling one of the deepest wells in the Western Desert. It has the potential to contribute to 10-15% of BAPETCO's overall production, our joint-venture company with the EGPC,” Murphy added.

Shell holds a 100% interest in the license containing the BTE-2 well with BAPETCO anticipated to operate the well. BTE-2 was spudded in June 2016 and has safely penetrated a complex high pressure zone in the upper part of the well. The discovery was made at a depth of 5,740m in the Kharita sandstone formation, where a gas column of 500m and more than 100m of reservoir sands with good porosities were confirmed.

Drilling operations continue to investigate the deeper Kharita sandstones beyond 6,000m. Evaluation of hydrocarbon volumes will be completed after drilling and well-testing has been completed.

The BTE-2 gas discovery is a continuation of Shell's exploration success in the Western Desert which holds a success rate of over 80%. In 2015, Shell applied the first high-resolution 3D seismic survey in the Western Desert over its Northeast Obaiyed and North Matruh exploration concessions. The application of advanced technology offers further means to enhance seismic imaging and improve the portfolio. As part of its long-term commitment in Egypt, Shell will continue to drill back-to-back exploration wells in these concessions until the end of 2017.

About Shell:

Shell companies in Egypt are wholly owned by the Royal Dutch Shell plc. Active in Egypt since 1911, Shell Egypt business today spans Upstream Oil and Gas Exploration & Production, and lubricants production and marketing. With the BG integration, Shell is also now a leading player in the development of the local natural gas industry with investments spanning the gas chain from exploration through development and production to downstream projects in LNG, and is operating the largest share of Egypt’s gas production, accounting for over a third of the country’s gas output, which supplies both domestic and international markets.

Shell’s upstream operations are located in the Western Desert and the Mediterranean Sea.

For media enquiries contact:

Ms. Sherine Nehad

External Communications Lead
Shell Egypt
sherine.nehad@shell.com
+201271110420

Mr. Nureddin Wefati

Head of Media Relations for Middle East & North Africa
Shell EP International
Tel: +97147055347
Cell: +971562162409
Nureddin.Wefati@Shell.com

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