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

Increases its investment and footprint in Egypt with five new exploration blocks

  

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.”

-Ends-

  • 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 

Cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this news release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this news release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This news release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition’, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this news release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this news release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2017 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward looking statements contained in this news release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this news release, February 12, 2019.

Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this news release.

We may have used certain terms, such as resources, in this news release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1- 32575, available on the SEC website www.sec.gov 

© Press Release 2019

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases