Shell Egypt and one of its subsidies signed an agreement to sell their upstream assets in Egypt’s Western Desert to a consortium consisting of subsidiaries of Cheiron Petroleum Corporation and Cairn Energy PLC.
The agreement includes the sale of upstream assets for $646 million as well as additional payments of up to $280 million between 2021 and 2024, based on the oil price and the results of further exploration, according to a statement on Tuesday.
The deal, subject to government and regulatory approvals, is expected to complete in the second half (H2) of 2021.
The assets include Shell Egypt’s interest in 13 onshore concessions and its share in the Badr El-Din Petroleum Company (BAPETCO).
“The deal will deliver value to Shell and to Egypt. It will enable Shell to concentrate on its offshore exploration and integrated value chain in Egypt, including seven new blocks in the Nile Delta, West Mediterranean and Red Sea,” Shell’s Upstream Director, Wael Sawan, said.
“It will help Egypt maximise the potential of its onshore assets through new investment, helping secure energy and revenue for years to come,” he noted.