Shell Strengthens Its Offshore Position In Egypt’s Nile Delta Acquires Offshore Block 3
May 18, 2022
Cairo - BG International Limited., a subsidiary of Shell plc., signed a Farm Out Agreement (FOA) with ExxonMobil Egypt (Upstream) Limited to acquire a 100% stake in the ExxonMobil-operated North East El-Amriya Offshore Area, Mediterranean Sea – also known as Block 3. On completion of the transfer, BG will become the operator.
Completion of the FOA is subject to government and regulatory approvals.
Commenting on the conclusion of this agreement, H.E. Minister of Petroleum and Mineral Resources Eng. Tarek El-Molla said: “This is an important development which demonstrates the vibrancy and competitiveness of Egypt’s oil and gas sector. We are delighted to have the opportunity to work with our partner Shell, which has a long history of working in the oil and gas sector, to further develop Egypt’s offshore hydrocarbon resources.”
Khaled Kacem, Shell’s Vice President & Country Chair for Egypt, said, “I am pleased to conclude this agreement, which demonstrates Shell’s deep commitment to Egypt. This agreement strengthens our portfolio in the offshore and supports our strategy to build a solid gas position in the country. The proximity of this block to our existing assets and other exploration blocks Shell holds in the area will help us accelerate our offshore ambitions. We have plans to potentially begin drilling of the first well during the first half of 2023.”
“We have significantly enhanced our presence in the offshore Mediterranean over the last three years and acquiring this new block is an important milestone towards achieving our growth strategy.”
In the West Nile Delta, BG Delta Limited – a company wholly owned by Shell – acquired North Sidi Gaber Concession (Blocks 4) and North Al Fanar Concession Block 6) in 2020, as operator, in partnership with PICL (Egypt) Corporation LTD for which seismic was acquired and the portfolio maturation is underway.
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 all or percentage stake in the venture.
- BG International Limited is a subsidiary company of Shell plc.
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