KUFPEC acquires 40% stake in Shell's Egypt exploration block
State-owned Kuwait Foreign Petroleum Exploration Company (KUFPEC) has signed an agreement with BG International, a subsidiary of Shell, to acquire a 40% stake in Block 3 (NorthEast El-Amriya) in the Egyptian Mediterranean Sea, it said on September 20.
The agreement is subject to government and regulatory approvals. Shell will remain the operator of Block 3.
KUFPEC CEO Mohammad Salem Al-Haimer said that the new partnership will enable KUFPEC to boost its offshore assets and exploration activities in Egypt.
"KUFPEC is already active in this region as it has been awarded North Ras Kanayes offshore block in the Mediterranean Sea in 2020," Al-Haimer said.
Khaled Kacem, Shell's vice president & country chair for Egypt, said that the proximity of Block 3 to Shell's existing assets and other exploration blocks in the area will help accelerate the company's offshore ambitions and support Egypt in meeting its energy supply needs.
Shell Egypt and partners began drilling activities in the Nile Delta Blocks 3 and 4 in August 2023. The exploration project entails three wells to be drilled consecutively.