BG Ltd., wholly owned by Shell plc, has signed a Farm Out agreement with ExxonMobil Egypt (Upstream) Ltd. under which Shell will fully acquire and manage the Northeast Amriya Offshore Concession in the Nile Delta in the Mediterranean Sea, known as Block 3, which is managed by ExxonMobil/
With the completion of the transfer of ownership, the management of the concession area will be transferred to Shell.
The agreement is subject to the approval of the relevant governmental and regulatory authorities.
“This is an important development that demonstrates the vibrancy and competitiveness of Egypt’s oil and gas sector. We are delighted to have the opportunity to work with our partner Shell, which has a long history of working in the oil and gas sector, to further develop Egypt’s offshore hydrocarbon resources,” Minister of Petroleum and Mineral Resources, Tarek El Molla, stated.
Khaled Kacem, Shell’s Vice President & Country Chair for Egypt, expressed his happiness with the conclusion of this important agreement, “I am pleased to conclude this agreement, which demonstrates Shell’s deep commitment to Egypt. This agreement strengthens our portfolio in offshore and supports our strategy to build a solid-gas position in the country. The proximity of this block to our existing assets and other exploration blocks Shell holds in the area will help us accelerate our offshore ambitions. We have plans to potentially begin drilling of the first well during the first half of 2023,” Kacem noted.
“We have significantly enhanced our presence in the offshore Mediterranean over the last three years and acquiring this new block is an important milestone towards achieving our growth strategy,” Kacem commented.