BP AND SHELL PULLING OUT OF GULF OF SUEZ
BP Exploration and the Royal Dutch/Shell Group are selling their interests in the Suez Oil Co. (SUCO).
SUCO is an Egyptian group operated by Germany's Deminex AG that conducts upstream work in the Gulf of Suez off Egypt.
The three European companies each have a 16.67% stake in SUCO, with state owned Egyptian General Petroleum Corp. holding the remainder.
SUCO produces about 105,000 b/d of oil from three fields in the Gulf of Suez.
Ras Budran and Ras Fanar are 1978 discoveries, and Zeit Bay was discovered in 1981.
BP is close to finalizing a deal to sell its holding to Repsol SA, Spain.
The Spanish state oil company in 1990 bought Conoco Inc.'s exploration and production assets in Egypt's western desert.
At this stage there is no indication who will buy Shell's holding.
The BP deal is likely to include the company's other minor exploration acreage in Egypt.
Shell, however, will remain in the country and concentrate on its operated assets in the western desert.
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