Wintershall Dea sells oil concession in Egypt to focus on natural gas production
German oil and gas company Wintershall Dea announced on Thursday it had divested a stake in a Gulf of Suez oil concession in Egypt as part of corporate strategy to focus on natural gas production.
“As of 1st January 2022, after 38 years of economic and efficient production from the Gulf of Suez, Wintershall Dea is closing this chapter of its long oil production history in Egypt.” the company said in a statement.
“The Gulf of Suez concession will always be a proud part of our history in Egypt. It was the foundation upon which we have built a successful, long-term business here, and it has made us a major contributor to Egypt’s energy supply”, said Sameh Sabry, senior vice president and managing director of Wintershall Dea Egypt.
“Now the time is right for Wintershall Dea to focus even more on where we can best deliver value with our significant ongoing investment in Egypt.” Sabry added.
The company said its presence in Egypt continues as it holds 17.25 percent of the major offshore West Nile Delta concession, one of the largest Egyptian gas projects, and as operator is producing at its onshore Nile Delta Disouq concession. With exploration at East Damanhour in the onshore Nile Delta, Wintershall Dea continues to invest in its future in the North African country.
“The decision to conclude the involvement in the oil production at the Gulf of Suez is part of Wintershall Dea’s corporate strategy, with the company’s Energy Transition Pathway and its focus on natural gas. Natural gas accounts for the majority of the global portfolio of Wintershall Dea, Europe’s largest independent gas and oil company.” the company added.
Wintershall Dea further said the natural gas is a climate-friendly conventional energy source, and it will have a growing role in achieving climate targets.
“It is affordable, flexible in its use, and can help to significantly reduce overall emissions, if used as a substitute to coal in generating electricity and heat. Additionally, it can be used to generate climate-friendly hydrogen.”
Egypt is one of Wintershall Dea’s established core countries, said Dawn Summers, the company’s chief operating officer and responsible board member for Egypt.
“We are very optimistic about Egypt’s future role as a regional gas hub and will continue to be a major German investor to the country.” Summers added.
“I would like to thank our SUCO Joint Venture partner EGPC for the excellent partnership we have enjoyed over the past decades, and all of the people who have done their upmost to make the Gulf of Suez concession the success it is. As we close this proud chapter of our oil history in Egypt, we are now excited to write new ones.”
