International oil companies begin submitting offers for Shell’s Egypt assets
M&A WATCH- IOCs bidding for Shell’s Egypt assets: Royal Dutch Shell has begun receiving offers from international companies for the upcoming sale of its onshore upstream assets in Egypt’s Western Desert, the local press reports, citing an unnamed industry source. The source did not say how many offers have been submitted so far, or which companies have expressed their interest in Shell’s Egypt portfolio. Shell is looking to close the sale, which could net as much as USD 1 bn for the company, by the end of the year.
Background: Shell had said back in October it is planning the divestment “in order to fully concentrate on growing its Egyptian offshore exploration and integrated gas business.” The company’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. Shell is not divesting from its offshore assets, downstream lubricants, or its share in Egyptian LNG.
Advisors: Shell has reportedly tapped investment bank Citi to manage the upcoming sale, sources close to the matter said in November. We have yet to see official confirmation of these reports.