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Sunday, 17 November 2019

Shell taps Citi to manage sale of its onshore upstream assets in Egypt’s Western Desert

M&A WATCH- Royal Dutch Shell has tapped investment bank Citi to manage the upcoming sale of its onshore upstream assets in Egypt’s Western Desert, sources close to the matter said, according to Reuters. The process for the sale, which could net as much as USD 1 bn for the company, is set to kick off officially at the end of the month. Both Shell and Citi declined the newswire’s request for official comment. Shell had said last month it is planning the divestment “in order to fully concentrate on growing its Egyptian offshore exploration and integrated gas business.”

What’s for sale? Shell’s portfolio in the Western Desert includes stakes in 19 oil and gas assets including the Badr El Din and Obaiyed area, as well as the North East Abu El Gharadig, West Sitra, Bed 1 gas, and West Alam El Shawish concessions, according to the company website.

Not for sale: Shell’s offshore assets, downstream lubricants, and its share in Egyptian LNG are not up for grabs as part of the transaction, the company said last month. Shell had also said prior to its divestment announcement that it has applied for the upcoming Red Sea bid round and is interested in future tenders for Mediterranean concessions.

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