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Shell fully acquires ExxonMobil Egypt's offshore Block 3

Shell fully acquires ExxonMobil Egypt's offshore Block 3

Arab Finance: BG International Limited, a subsidiary of Shell Plc, has signed a Farm Out Agreement (FOA) with ExxonMobil Egypt (Upstream) Limited to fully acquire the North East El-Amriya Offshore Area, Mediterranean Sea, known as Block 3, according to an emailed press release on May 18th.

Once the transaction is complete, BG International will be the operator of the offshore Block 3.

The agreement is subject to government and regulatory approvals.

“This is an important development which 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 commented.

For his part, Khaled Kacem, Shell’s Vice President and Country Chair for Egypt, said: “This agreement strengthens our portfolio in the 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.”

Shell has been expanding its footprint in the offshore Mediterranean over the last three years and the acquisition of this marks a remarkable step for the company towards achieving its growth strategy, Kacem highlighted.

It is worth noting that BG Delta Limited, a wholly-owned company by Shell, had acquired the North Sidi Gaber Concession (Block 4) and the North Al Fanar Concession (Block 6) located in the West Nile Delta in 2020, in partnership with PICL (Egypt) Corporation LTD.

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