Dutch Shell company is close to finalising the sale of its existing oil assets and natural gas concession areas in the Western Desert, which represent about 80% of its assets in Egypt.
A source in the petroleum sector told Daily News Egypt that after completing the deal, the company will only have Rashid and Burullus fields whose production is estimated at 290m cubic feet of gas per day (scf/day).
He added that the company has five research and exploration areas after winning the Egyptian Natural Gas Holding Company’s (EGAS) tender. This will not be included in the sale as there is no development and production agreement.
He explained that Shell Egypt was granted oil exploration rights in three areas in the concessions of West Fayoum, Southeast Horus, and South Abu Sinan with investments of $24.7m, $24.5m, and $7.8m, respectively. The company also plans to obtain 14 exploratory wells in the Egyptian General Petroleum Corporation’s (EGPC) tender.
The source pointed out that the company won the EGAS’ exploration tender in both North Sidi Gaber Marine and North Fanar Marine with a financial commitment of $60m and $9m, respectively.
He stressed that the company intends to progress in tenders of exploration areas located in the Mediterranean and Nile Delta during the next year after the sale of its concessions in Western Desert. It will also bid for gas exploration and research in the Red Sea proposed by South Valley Egyptian Petroleum Holding Company.
He pointed out that the sale of the company’s assets made in the oil sector represents a positive reputation of investments and confirms the Egyptian oil market’s attractiveness to international companies.
The source said that Shell has begun to expand globally in the activity of gas exploration in offshore areas.
He added that Shell has offered for sale many of its concession areas around the world, including outdated and offshore, including areas in the North Sea.
The source revealed that Shell has already obtained the approval of the Ministry of Petroleum to offer its concession for sale, which represents a positive picture of investment in the sector and the occurrence of many acquisitions of oil companies during the last three years.
Shell International is one of the largest companies working in the oil and gas field and has new technologies and efficient human cadres. Accordingly, they decided to put in more intellectual investment into expanding its projects, which will include the increased research and exploration for natural gas in deep water.