Shell closes $926mn Egyptian sale
Shell has completed the sale of its onshore fields in Egypt's Western Desert area for up to $926mn to UK producer Cairn Energy and its Egyptian partner Cheiron Petroleum, the companies announced on September 24.
The business being sold includes interests in 13 onshore concessions and a 50% stake in the Badr El Din Petroleum Co, a joint venture with Egyptian General Petroleum Corp, which holds several more production assets. Cairn and Cheiron will pay a base price of $646mn for the assets, plus up to $280mn in contingency payments between 2021 and 2024, depending on oil prices and exploration results.
Shell netted 83,000 barrels of oil equivalent/day from the assets last year, two thirds of which was gas.
The deal, first announced in March, has been backdated to January 1, 2020. It marks Cairn's entry into Egypt. But Shell is not leaving, as it will retain its offshore interests in the Nile Delta, West Mediterranean and the Red Sea, as well its LNG plant in the country and its downstream operations.