Shell Egypt signs new production sharing contract with the Ministry of Petroleum and Mineral resources in the Red sea

Cairo: The Minister of Petroleum and Mineral Resources Tarek El Molla signed a new Production Sharing Contract (PSC) with Shell Egypt to explore for oil and natural gas in Block 4 in the offshore deep waters in the Red Sea, of Ganoub El Wadi Petroleum Holding Company (Ganope), with an area of 3084 sq. km. Shell Egypt acquires 63% equity share, while Emirati Mubadala Petroleum acquires 27% share and Egyptian Tharwa Petroleum Company owns 10% of the contractor’s share.

This comes in line with Shell Egypt’s strategy to focus its strategic investments in country on offshore deep-water opportunities and its integrated gas business, especially that the Red Sea Basin – located in South of the Gulf of Suez – is considered a frontier area.

Khaled Kacem, Country Chairman and Managing Director of Shell companies in Egypt, expressed his appreciation at signing the new exploration Production Sharing Contract (PSC) block 4, in the Red Sea, supported by Shell’s extensive global deep-water experience in exploration and production of oil and gas.

Kacem further pointed out that the new awarded concessions are aligned with the company’s strategy to grow its business in the gas projects in Egypt’s offshore areas, which supports the country’s sustainable development goals.

It is worth noting that Shell Egypt has won two blocks in the international bid round for oil and gas exploration in the Red Sea by the Ganoub El Wadi Petroleum Holding Company, which was announced in December 2019. Shell Egypt also succeeded in implementing a number of various activities in the field of exploration and production in deep-waters, including the West Delta Deep Marine (WDDM) Phase 9B project. This is in addition to the recently awarded Blocks 4 and 6 in the 2018 EGAS bid rounds – announced in 2018 – as part of Egyptian Natural Gas Holding Company’s international bid round for petroleum and gas exploration, along with the participation of several global companies.

-Ends-

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:
Hassan Almarashi
Head of Media Relations for Middle East & North Africa
Shell EP International Ltd
Tel:   +971 4 705 5783
Hassan.Almarashi@Shell.com  

Tamara Abdulhadi
Media Relations for Middle East & North Africa
Shell EP International Ltd
Tel:    +971 4 705 5294

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