BG International Limited, a subsidiary of Shell, signed a Farm Out Agreement (FOA) to acquire a 100 percent stake in ExxonMobil’s operated north-eastern El-Amriya Offshore Area in the Mediterranean Sea, also known as Block 3.
“On completion of the transfer, BG will become the operator,” a statement by Shell read on Wednesday, adding that the agreement is subject to the Egyptian government’s regulatory approvals.
Egyptian Minister of Petroleum 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 further said.
Khaled Kacem, Shell’s vice president and country chair for Egypt, said the deal demonstrates Shell’s deep commitment to Egypt, strengthens the company’s portfolio of offshore activities, and 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,” Kacem added.
In 2020, BG Delta Limited, a company owned by Shell, acquired the right to operate the Sidi Gaber Concession, known as Block 4, and Al-Fanar Concession, known as Block 6, in partnership with PICL (Egypt) Corporation LTD, acquiring seismic rights with portfolio maturation underway.