Shell Egypt awarded highest number of blocks in EGPC & EGAS 2018 international licensing rounds

Cairo, Egypt – The Ministry of Petroleum awarded Shell Egypt N.V. (Shell) five Production Sharing Contracts (PSC) for three concessions in the Western Desert and two concessions in the Offshore Nile Delta. The award of five blocks is a result of a competitive bid process with other operators in country. Those contracts were signed in light of Shell’s mission to increase its strategic investments in Egypt. Shell Egypt was awarded the blocks in February 2019 as part of the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS) 2018 international licensing rounds.

The record award results are in line with Shell Egypt’s growth strategy, aiming to expand the existing footprint and secure a material position in the country. This is evident by the company increasing its onshore natural gas production by driving up activities over the last two years, and launching a new offshore drilling campaign– phase 9B – in the Mediterranean last year, both bringing additional production onstream ahead of schedule and also making a significant offshore gas discovery with its Swan-East 1 well.

Shell also recently pioneered the use of Fishbones technology in the Western Desert, where its Bed 9-G well tested at significantly higher rates than expected, unlocking tight gas in the first pilot of its kind. In addition, Shell is currently undertaking the first endeavor in Egypt to unlock tight gas in deep hard rock.

“Shell is building on more than 30 years of expertise in exploration and production in the Western Desert, a delivery heartland for us over many years, through the Badr El Din Petroleum Company. We are very proud of winning the additional exploration acreage which fits well into Shell’s growth strategy in Egypt. At the same time, we welcome the opportunity to grow our position and footprint in the Nile Delta. Shell has a strong infra-structure position with the West Delta Deep Marine concession - and Egyptian LNG facilities - and has firm growth plans to expand its offshore production through an ambitious exploration programme”, said Eng. Gasser Hanter, VP and Country Chairman for Shell Egypt, adding, “We are committed to start the exploration operations as soon as possible after final ratification, and will strive to bring any commercial discoveries onstream in record time, similar to what we did in our North Um Baraka concession where first gas was brought onstream only 6 months after the concession award and only 40 days after discovery.”

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• The Egyptian General Petroleum Corporation (EGPC) international licensing round had 11 blocks, where Shell applied for 3 blocks; located in South-East Horus, West El Fayium, South Abu Sennan. In February 2019, Shell was awarded the three blocks in the Western Desert.
• The awarded blocks cover an area of8730 square kilometres and are adjacent to the operational heartland of Badr El Din Petroleum Company (Bapetco); a joint-venture between Shell and the EGPC.  The work commitment, in the first exploration phases over 3-4 years, is 9 wells and more than 1000 square kilometres of 3D seismic acquisition.
• The Egyptian Natural Gas Holding Company (EGAS) 2018 international licensing round had 16 blocks available for bidding, where Shell applied for 3 blocks; located in the offshore Nile Delta. The offshore Nile delta awarded blocks cover an area of4305 square kilometres and located in close proximity to our existing Rashpetco operated blocks. The work commitment, in the first exploration phase over 3 years, is 1 well and more than 3500 square kilometres of 3D seismic acquisition.
• Shell has one of the largest onshore exploration teams in Egypt with high technology capabilities and strong support from the Shell Technology Centre, as the company has been operating in Egypt for more than 100 years. 

About Shell in Egypt

Shell companies in Egypt are wholly owned by the Royal Dutch Shell plc. Shell has been active in Egypt for over 100 years and remains a leading player in country with investments spanning the value chain. Shell’s integrated portfolio includes onshore and offshore upstream operations, LNG, through our Egyptian LNG (ELNG) joint-venture, and the lubricants business through Shell Lubricants Egypt (SLE).

Our upstream operated joint ventures include Bapetco (onshore) and Rashpetco (offshore), which are 50% owned by the Egyptian General Petroleum Corporation (EGPC), the body representing the Egyptian government in the petroleum sector.

Shell also prides itself in having an extensive social investment agenda that focuses on enterprise development (through the Shell Intilaaqah Programme), human capital development, road safety, and energy efficiency.

For more info, please visit: www.shell.com 

ENQUIRIES:

Nureddin Wefati

Head Media Relations Middle East & North Africa

Shell EP International

Tel: +971 4 705 5347

Cell: +971 56 216 2409

Nureddin.Wefati@Shell.com  

Hassan Almarashi

Spokesperson Middle East & North Africa

Shell EP International Ltd

Tel:   +971 4 705 5783

Cell: +971 56 226 0924

Hassan.Almarashi@Shell.com  

Sherine Nehad

Communications Manager

Shell Egypt

Tel: +201271110420

sherine.nehad@shell.com 

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© Press Release 2019