Shell enters into an agreement for its onshore upstream interests in Egypt with Cheiron Petroleum Corporation and Cairn Energy PLC

The transaction is subject to government and regulatory approvals and is expected to complete in the second half of 2021

  

Shell Egypt and one of its affiliates have entered into a SPA for their upstream assets in Egypt’s Western Desert with a consortium made up of subsidiaries of Cheiron Petroleum Corporation and Cairn Energy PLC for a base consideration of US$ 646 million and additional payments of up to $280 million between 2021 and 2024, contingent on the oil price and the results of further exploration.

The transaction is subject to government and regulatory approvals and is expected to complete in the second half of 2021.

The package of assets consists of Shell Egypt’s interest in 13 onshore concessions and the company’s share in the Badr El-Din Petroleum Company (BAPETCO).

“Today’s announcement is consistent with Shell’s efforts to shift our Upstream portfolio to one that is more focused, resilient and competitive” said Wael Sawan, Shell’s Upstream Director.  

“The deal will deliver value to Shell and to Egypt. It will enable Shell to concentrate on its offshore exploration and integrated value chain in Egypt, including seven new blocks in the Nile Delta, West Mediterranean and Red Sea. It will help Egypt maximize the potential of its onshore assets through new investment, helping secure energy and revenue for years to come.”

Khaled Kacem, Shell’s Country Chair for Egypt, said: “We are proud of our history as one of the first oil and gas companies in the Western Desert, and as a partner in BAPETCO since its formation almost four decades ago. BAPETCO and the Western Desert concessions continue to provide revenue, jobs and energy for the country, while Egypt’s Modernization Programme will ensure that this will be the case for many years to come. I would like to pay tribute to the staff, stakeholders, partners and authorities who have contributed to the success of this key milestone and towards a deal completion in the near future.”

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2021

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