Royal Dutch Shell Company offered the Egyptian Rosetta concession in Rashid up for sale. A source close to the company stated that Shell decided it won’t complete development operations in Rosetta. He added: “Development will be expensive with almost no economic feasibility, considering the price of gas produced there,” reported Daily News Egypt.
The Rosetta field produces 40mcf/d of gas and it will stop producing by July as the natural maturity is not stopped by development. While, Shell had allocated $22.7m for operational costs of the Rosetta field and $1.4m for field maintenance without new developments.
Shell has reduced its investments for fiscal year 2016/2017 in Burullus and Rashid concessions in order to cover only operation and maintenance costs. Shell plans on investing $158.9m in fiscal year 2016/2017, after investing $222m in fiscal year 2015/2016.
In related new, UK’s BP bought the Rosetta gas treatment plant in Rashid from Shell for $128m. After the sale , Shell moved its supply extracted at the Rosetta field to the Burullus gas treatment plant. Furthermore, BP received the plant in April 2016 and started preparations to link it to gas field. The source added that Rosetta gas treatment plant’s maximum capacity is 425mcf/d of gas of which 420mcf will be from Fayoum field and Giza field by 2019.