Shell completes the sale of its asset in the western desert of Egypt

Shell Egypt and Shell Austria have announced the completion of the sale of theirs asset production and exploration in the Western Desert in Egypt to a consortium consisting of subsidiaries of Kiron Petroleum Corporation and Kern Energy PLC, for approximately $ 646 million, plus other payments that could amount to $ 280 million From 2021 to 2024, depending on oil price and exploration results future.

The sale was announced on March 9, while the effective date of the transaction is January 1 of last year. Completion of the transaction comes after receiving all government approvals and regulations.

Wael Sawan, CEO of Shell International’s Exploration and Production, said, “This deal is in in line with Shell’s global efforts to better target its exploration and production portfolio to become more focused, flexible and competitive and to play a vital role in our strategy titled “Advance Progress”.

In Egypt, this transaction will allow Shell to focus on the value-added chain of offshore exploration projects in Egypt, including the West Nile Delta concessions, as well as on gas liquefaction operations conducted through the joint venture LNG.

In the same context, Khaled Kassem, President and CEO of Shell Egypt, said that Shell has been present in the Egyptian market for 110 years and still represents one of the few integrated energy companies that have a presence in the integrated value chain.

With the completion of this transaction, Shell is refocusing its business in Egypt on the state of existing infrastructure. In addition to the concessions of the company in the West Nile Delta (Deep Marine) and the joint liquefied natural gas company, there is a deep “Harmtan” project and exploration, exploration and production operations in the seven new concessions in the Nile Delta, the West Mediterranean and Red Sea, as well as Shell’s lubricants business through Shell Lubricants Egypt.

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