Kuwait's Foreign Petroleum Exploration Company (KUFPEC) signed a farm-out agreement with Shell subsidiary BG International Limited to acquire 40% of Egypt's Nile Delta offshore block 3, the company said on Wednesday.
Shell will remain to be the operator in Block 3, it added. However, it didn't disclose a value for the transaction.
KUFPEC CEO Mohammad Salem Al-Haimer said that "we are glad to expand our presence in Egypt in cooperation with our international operating partners in highly prolific exploration basins in line with our 2040 strategy. This new partnership in Block 3 empowers KUFPEC to boost its offshore assets and exploration activities in Egypt".
KUFPEC is already active in this since it was awarded North Ras Kanayes Offshore block in the Mediterranean Sea in 2020.
Khaled Kacem, Shell's Vice President & Country Chair for Egypt, said: "The proximity of this block to Shell's existing assets and other exploration blocks Shell holds in the area will help accelerate the company's offshore ambitions and support Egypt in meeting its energy supply needs."
In August 2023, Shell Egypt and partners commenced drilling activities in the Nile Delta Blocks 3 and 4, located in the Mediterranean Sea. The exploration project entails three wells to be drilled consecutively.
(Writing by Brinda Darasha; editing by Seban Scaria)