Shell Egypt N.V. said it has been awarded two concessions in the Red Sea licensing round, which was launched in early 2019.
It won Block 4 in partnership with UAE’s Mubadala Petroleum (30%) and Block 3 as the sole licence holder, Shell said in a statement.
The award is in line with Shell’s strategy to focus its investments in Egypt on offshore deep water opportunities and integrated gas business, seeking to grow by expanding its existing footprint and securing a material position in the country.
Shell said its activities in the West Delta Deep Marine (WDDM) Phase 9B project also demonstrates this strategy in action as well as the recently awarded Blocks 4 and 6 in the 2018 EGAS bid rounds.
The awarded blocks cover an area of 6,141 square kilometres in an underexplored region of Egypt. The Red Sea Basin is south of the prolific Gulf of Suez hydrocarbon province. The work commitment, in the first exploration phases over three years, includes acquiring over 1,000 square kilometres of 3D seismic data, and petroleum systems studies.
Khaled Kacem, VP and country chair of Shell Egypt said, “We are proud of winning the exploration acreage in the Red Sea, which fits well into Shell Egypt’s growth strategy in offshore and integrated gas businesses. We welcome the opportunity to grow our position and footprint in Egypt through the awarded concession, which will confirm Shell’s support to Egypt’s transition into a regional energy hub. Shell has a strong infrastructure position with the West Delta Deep Marine concession and Egyptian LNG facilities, as well as firm growth plans to expand its offshore production through an ambitious exploration programme. We are committed to start exploration operations after final ratification.”
He also added, “Shell is leaning on 50 years of expertise in offshore, deep water exploration, and the integrated gas business, delivering many large-scale projects around the world. This is where Shell can best leverage its expertise and deliver the strongest added value to Egypt.”