BG International, a subsidiary of energy major Shell, has agreed to obtain ExxonMobil’s 100% stake in Egypt’s block three in the offshore area of North East El-Amriya.
Shell, which recently announced that it will be selling its lubricant and retail businesses in Russia to Lukoil, believes the block will fit well with its existing assets. Khaled Kacem, the Country Chair and Vice President of Shell Egypt, said the deal would support the company’s aim to establish a robust position in Egyptian gas production by strengthening its offshore portfolio. He said that with the block being geographically close to existing assets, it would help the company to realise its offshore ambitions more rapidly.
In a statement, Tarek El-Molla, the Minister of Petroleum and Mineral Resources for Egypt, said about the deal:
“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.”
Shell now intends to start drilling the first well in the block in the early half of 2022. In addition to this block, BG Delta, which is wholly owned by Shell, is the designated operator of two other blocks in the West Nile Delta, namely the North Al Fanar Concession and the North Sidi Gaber Concession, which it purchased together with PICL (Egypt) and is currently at the portfolio maturation stage.