Shell inks two offshore agreements with Egypt, shifting focus to marine production
Shell has signed two new oil and gas exploration agreements with the Oil Ministry in the Herodotus Basin deepwater sector off Egypt’s western Mediterranean coastline, the Dutch company’s Egypt office said in a press release (pdf). Shell acquired 67% of the 6.8k sqm North Marina and North Cleopatra concessions through its subsidiary BG Delta Limited, which will be in charge of operations. The remaining stake was awarded to Chevron, which acquired 27% through subsidiary Noble Energy Egypt and state-owned Tharwa Petroleum Company, which snapped up 10%.
Drilling in the concession areas will commence within three years of the agreements being ratified by the House of Representatives, and will continue for three years, the statement said. The companies will run seismic scans in early stages, it added.
Is Shell hoping to strike a new Zohr? Shell reached an agreement earlier this month with Egypt’s Cheiron Petroleum Corporation and UK-listed Cairn Energy to sell its onshore assets in the Western Desert as it shifts its investment focus in Egypt toward marine and deepwater production. Yesterday’s agreements complement the new strategy, the company said in its press release, adding that western Mediterranean exploration blocks hold great promise for natural gas discoveries. Shell is planning on upping its exploration activities in Egypt, “to contribute to Egypt’s transformation into a regional energy hub,” Chairman Khaled Kassem said.