Shell to Sell Onshore Upstream Interests in Egypt
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 acquire Shell’s upstream assets in Egypt’s Western Desert for a base consideration of USD 646 million and additional payments of up to D280 million between 2021 and 2024, contingent on the oil price and the results of further exploration. The package of assets consists of Shell Egypt’s interest in 13 onshore concessions and the company’s share in Badr El-Din Petroleum Company BAPETCO.
The transaction comprises the following assets:
50% non-operator interest Badr El-Din Petroleum Company
Producing assets operated by BAPETCO
100% interest in Obaiyed, North Umbaraka, Badr el Din (BED) fields, Sitra, North Alam El Shawish, and North Matruh
52% interest in North East Abu Gharadig where Shell Egypt is partnered with Apache Abu Gharadig Corporation LDC
40% interest in Alam El Shawish where Shell Egypt is partnered with North Petroleum International Company S.A. and Neptune Energy Alam El Shawish B.V.
The Shell Egypt-operated onshore exploration assets (100% Shell): South East Horus, West El Fayum, and South Abu Sennan.
The transaction is subject to government and regulatory approvals and is expected to complete in the second half of 2021.