Shell farms out partial stake in Block 3 offshore Egypt

Shell plc subsidiary BG International Ltd. agreed to farm out a 40% interest in the North East El-Amriya offshore area (Block 3) in the Egyptian Mediterranean Sea to Kuwait Foreign Petroleum Exploration Co. subsidiary KUFPEC (Egypt) Ltd.
Sept. 22, 2023

Shell plc subsidiary BG International Ltd. agreed to farm out a 40% interest in the North East El-Amriya offshore area (Block 3) in the Egyptian Mediterranean Sea to Kuwait Foreign Petroleum Exploration Co. (KUFPEC) subsidiary KUFPEC (Egypt) Ltd. (KEL).

Shell will remain as block operator, a position gained through its 100% acquisition of the asset from ExxonMobil in 2022 (OGJ Online, May 19, 2022).

The agreement is subject to government and regulatory approvals, without prejudice to pre-emption rights, KEL said in a release Sept. 20.

Khaled Kacem, Shell’s vice-president and country chair for Egypt, said the new partnership in the Nile Delta Block 3 will enable the companies to leverage their joint expertise to progress the opportunity.

In August, Shell Egypt and partners began drilling activities in the Nile Delta Blocks 3 and 4. The exploration project envisages three wells to be drilled consecutively.

About the Author

Alex Procyk

Upstream Editor

Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).

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