Shell Selling Onshore Egypt Assets
Oil major sells its holdings in Egypt’s Western Desert.
Shell Egypt and one of its affiliates have signed an agreement with a consortium made up of subsidiaries of Cheiron Petroleum Corporation and Cairn Energy PLC to sell its upstream assets in Egypt’s Western Desert for a base consideration of $646 million. Additional payments of up to $280 million between 2021 and 2024 will be made contingent on the oil price and the results of further exploration.
The transaction is subject to government and regulatory approvals and is expected to complete in the second half of 2021.
The package of assets comprises Shell Egypt’s interest in 13 onshore concessions and the company’s share in Badr El-Din Petroleum Company.
Shell will shift its exploration focus in Egypt offshore, which includes seven new blocks in the Nile Delta, West Mediterranean, and Red Sea.