Shell Egypt, Emirati Mubadala to Explore for Oil, Natural Gas in Red Sea
Thursday 21 Jan 2021
Shell Egypt acquired 63 percent, Emirati Mubadala Petroleum 27 percent, and Egyptian Tharwa Petroleum Company 10 percent of the contractor’s share
Egypt’s Minister of Petroleum and Mineral Resources Tarek El-Molla inked a new production sharing contract between the state-owned Ganoub El-Wadi Petroleum Holding Company (Ganope) and Shell Egypt to explore for oil and natural gas in the deep waters of the Red Sea.
According to the agreement, Shell Egypt will explore in the Red Sea's Bloc 4, an area of 3084 sq km, Shell Egypt said in a statement.
Shell Egypt acquired 63 percent equity share, Emirati Mubadala Petroleum 27 percent share, and Egyptian Tharwa Petroleum Company 10 percent of the contractor’s share, states the contract.
Khaled Kacem, country chairman and managing director of Shell companies in Egypt, said the new awarded concessions are in line with the company’s strategy to grow its business in gas projects in Egypt’s offshore areas, which supports the country’s sustainable development goals.
In December 2019, Ganope gave Shell Egypt the right to explore in two blocs in an international bid for oil and gas exploration in the Red Sea.
Shell Egypt has conducted several exploration missions in Egypt’s deep waters, such as the West Delta Deep Marine Phase 9B project.
In 2018, the Egyptian Natural Gas Holding Company held an international bid for oil and gas exploration in which Shell Egypt was granted exploration rights in blocs 4 and 6.