Shell enters a new partnership in Egypt’s mediterranean block
Sep 20, 2023
Cairo - BG International Limited, subsidiary of Shell plc., signed Farm Out Agreement (FOA) with KUFPEC, under which KUFPEC will acquire 40% stake in Block 3 (NorthEast El-Amriya) in the Egyptian Mediterranean Sea.
This FOA is subject to government and regulatory approvals, without prejudice to pre-emption rights.
Shell will remain to be the operator in Block 3.
Khaled Kacem, Shell’s Vice President & Country Chair for Egypt, said, “I am very pleased with our new partnership in the Nile Delta Block 3, which will enable us to leverage our joint expertise as we progress the opportunity. Concluding this agreement strengthens Shell’s offshore position. The proximity of this block to Shell’s existing assets and other exploration blocks Shell holds in the area will help accelerate the company’s offshore ambitions and support Egypt in meeting its energy supply needs.”
KUFPEC Chief Executive Officer (CEO) Mohammad Salem Al-Haimer stated, "we are glad to expand our presence in Egypt in cooperation with our international operating partners at highly prolific exploration basins in line with our 2040 strategy. This new partnership in Block 3 empowers KUFPEC to boost its offshore assets and exploration activities in Egypt”. KUFPEC is already active in this region as it has been awarded North Ras Kanayes Offshore block in the Mediterranean Sea in 2020”, added KUFPEC CEO.
In August 2023, Shell Egypt and partners have commenced drilling activities in the Nile Delta blocks 3 and 4, located in the Mediterranean Sea. The exploration project entails three wells to be drilled consecutively.
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 60% (Operator), KUFPEC 40%
- BG International Limited is a subsidiary company of Shell plc.
Shell Egypt N.V. is wholly owned by Shell plc. Shell has been active in Egypt for over 100 years and remains a leading player in the country with investments spanning the value chain. Shell’s integrated portfolio includes exploration, upstream operations, LNG through our Egyptian LNG (ELNG) joint-venture, and the lubricants business through Shell Lubricants Egypt (SLE).
For more information, please visit: www.shell.com
KUFPEC is an international upstream company engaged in exploration, development and production of crude oil and natural gas outside the State of Kuwait and is a wholly-owned subsidiary of Kuwait Petroleum Corporation.