‘Shell Egypt’ to Sell Assets in Western Desert

Monday, 21 October, 2019 - 12:00
Cairo - Asharq Al-Awsat

“Shell Egypt” plans to sell its onshore upstream assets in the Western Desert to focus on expanding its offshore gas explorations.

Shell issued a statement, a copy of which was received by Asharq Al-Awsat, saying that it remains committed to Egypt and sees its 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 optimize our portfolio to ensure the company delivers a world-class investment case,” announced Wael Sawan, Shell Upstream Director.

Shell Egypt CEO Khaled Kacem announced that the company is looking for a capable buyer that will bring new investment and growth into the Western Desert and build on the company’s successful partnership with the Egyptian General Petroleum Corporation.

He explained that 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. During the divestment process, we remain committed to ensure continued safe and reliable operations, and will keep our stakeholders regularly informed.”

Kacem also detailed that Shell companies are progressing with new offshore activities, including West Delta Deep Marine (WDDM), which involves eight new development wells, and exploration in WDDM, for which a 2nd offshore rig has been recently mobilized, that will be followed up with exploration in Rosetta as well as the recently awarded Blocks 4 and 6.

Meanwhile, Minister of Petroleum and Mineral Resources Tarek al-Mulla inaugurated the 14th Joint Organizations Data Initiative (JODI) held in Cairo in the presence of Secretary-General of International Energy Forum (IEF) Sun Xiansheng, and representatives of the global organizations participating in the initiative.

Addressing the conference, Mulla stressed the importance of JODI initiative and its active role in ensuring the security and sustainability of energy supplies through cooperation between producing and consuming countries by facilitating data exchange in the oil and gas industry.

The initiative was launched in 2000 in response to the fluctuations in oil prices at the time, which had a negative impact on the global economy due to the lack of reliable data.

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