Shell has announced that it is putting its current onshore Upstream assets in the Western desert in Egypt up for sale as it focuses on growing its Egyptian offshore exploration and integrated gas business.
Wael Sawan, Shell Upstream director, said: “We remain committed to Egypt and see our future in supporting the Government’s energy hub vision by growing Shell positions across the offshore and LNG value chain. This is where we can best leverage our expertise, deliver the strongest added value to Egypt, and optimise our portfolio to ensure the company delivers a world class investment case.”
Khaled Kacem, Shell Egypt Country Chair, added: “Shell companies are progressing with new offshore activities, including our West Delta Deep Marine (WDDM) Phase 9B project, which involves eight new development wells, and exploration in WDDM, for which a 2nd offshore rig has been recently mobilised, that will be followed up with exploration in Rosetta as well as the recently awarded Blocks 4 and 6.
“We are looking for a capable buyer that will bring new investment and growth into the Western Desert and build on our successful partnership with the Egyptian General Petroleum Corporation. Any sale is contingent on finding an appropriate buyer, commercial negotiations and required approvals. We anticipate the start of active engagement with potential buyers in Q4 2019.”
Toushar Chakrabarty, a research analyst on Wood Mackenzie’s North Africa upstream team, said: “We value the assets for sale at US$775 million (NVP 10, January 2020), mainly amongst the Badr El Din and North Alam El Shawish developments. Shell’s portfolio in the Western Desert is centred around five key areas, with an average production of about 110,000 barrels of oil equivalent per day in 2019.
“Shell is trying to high-grade its portfolio by focusing on exploration opportunities, and its flagship offshore assets.”