Shell Enters a New Partnership in Egypt’s Red Sea Blocks
Dec 13, 2021
Cairo - Shell Exploration & Production (93) B.V., subsidiary of Royal Dutch Shell plc., signed Farm Out Agreements (FOAs) with QatarEnergy, under which QatarEnergy will acquire 17% stake in each of Shell-operated Block 3 and Block 4 in the Egyptian Red Sea.
These FOAs are subject to government and regulatory approvals, without prejudice to pre-emption rights.
This follows an earlier dilution of Blocks 3 and 4 to BHP Petroleum (Egypt) Limited, which is also subject to government and regulatory approvals.
Shell will remain the operator in both blocks.
Khaled Kacem, Shell’s Vice President & Country Chair for Egypt, said, “Bringing such reliable partners into the project will enable us to leverage our joint expertise as we progress the opportunity. It is also worth highlighting that we were able to attract new market entrants thanks to the favourable investment climate in Egypt”.
Notes to editors:
- Farm Out Agreement (FOA) is a type of contract which enables an existing project participant to add new parties to the project by selling a percentage stake in the venture.
- The partner equity post-FOA completion will be as follows:
- Block 3: Shell 43% (Operator), Tharwa 10%, BHP 30%, QatarEnergy 17%
- Block 4: Shell 21% (Operator), Mubadala Petroleum 27%, Tharwa 10%, BHP 25%, QatarEnergy 17%
- Shell Exploration & Production (93) B.V. is a subsidiary company of Royal Dutch Shell plc.
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