Shell subsidiary BG Int'l Limited acquires ExxonMobil’s offshore position in Egypt

Doaa A.Moneim , Wednesday 18 May 2022

BG International Limited — a subsidiary of Shell plc. — signed a Farm Out Agreement (FOA) with ExxonMobil Egypt to acquire a 100 percent stake in the ExxonMobil-operated north-eastern El-Amriya Offshore Area in the Mediterranean Sea, which is also known as Block 3, Shell announced on Wednesday.

Shell

 

According to the deal, BG will become the operator, with the agreement subject to the Egyptian government’s regulatory approvals.

Minister of Petroleum and Mineral Resources Tarek El-Molla said that the agreement is an important development, which demonstrates the vibrancy and competitiveness of Egypt’s oil and gas sector. 

“We are delighted to have the opportunity to work with our partner Shell — which has a long history of working in the oil and gas sector — to further develop Egypt’s offshore hydrocarbon resources,” the minister added.

Khaled Kacem — Shell’s vice president and country chair for Egypt — said the deal demonstrates Shell’s deep commitment to Egypt and strengthens the company’s portfolio of offshore activities as well as supports its strategy to build a solid gas position in the country. 

“The proximity of this block to our existing assets and other exploration blocks Shell holds in the area will help us accelerate our offshore ambitions. We have plans to potentially begin drilling the first well during the first half of 2023,” he explained.

In 2020, BG Delta Limited — a company owned by Shell — acquired the right to operate the Sidi Gaber Concession (Block 4) and Al-Fanar Concession (Block 6) in partnership with PICL (Egypt) Corporation LTD, acquiring seismic rights with portfolio maturation underway.

Short link: