The sale was concluded for a base consideration of $646 million and additional payments of up to $280 million between 2021 and 2024, hinging on the global oil price and the results of further exploration.
The sale was announced on 9 March 2021 and the transaction’s effective date is 1 January 2020.
The effective date of 1 January 2020 represents the date economic interest moved to the purchasers, while the consideration will be adjusted for net cash flows after this date, according to Shell.
The company said that the sale completion follows receipt of all necessary regulatory approvals.
“This transaction is in line with our plan to reshape our upstream portfolio into one that is more focused, more resilient and more competitive to play a vital role in our Powering Progress strategy. In Egypt, this includes our continued commitment to delivering value and supply across our gas value chain, such as our interests in the West Delta Deep Marine and in Midstream through our Egyptian LNG joint-venture,” said Wael Sawan, Shell’s upstream director.
Khaled Kacem, Shell’s vice president and country chair for Egypt, said that Shell is proud of its long history in Egypt that has been lasting for 110 years.
With this transaction Shell is refocusing its business in Egypt on its existing infrastructure position, according to Kacem.
In addition to West Delta Deep Marine and Egyptian LNG joint-venture this includes the Harmattan Deep Project and Exploration acreage in the new seven blocks in the Nile Delta, West Mediterranean and the Red Sea, and in Downstream through Shell Lubricants Egypt (SLE).
Both Shell Egypt NV and Shell Austria GmbH are subsidiaries of Royal Dutch Shell.