Initial base price is valued at $646 million, with additional payments to go up to $280 million between 2021 and 2024, wrote Reuters who broke the story
Shell Egypt has signed agreements to sell their assets in Egypt's western desert to Cheiron Petroleum Corporation and Cairn Energy Plc for up to $926 million, announced Shell earlier today.
Initial base price is valued at $646 million, with additional payments to go up to $280 million between 2021 and 2024, wrote Reuters who broke the story.
These prices will be subject to the price of oil and the results of future explorations, the statement wrote.
The company stated that the deal is subject to government approvals, and is expected to be completed in the second half of this year.
“It will enable Shell to concentrate on its offshore exploration and integrated value chain in Egypt, including seven new blocks in the Nile Delta, West Mediterranean and Red Sea,” the company said.
The deal includes Shell Egypt’s stake in 13 onshore concessions and its share in the Badr El-Din Petroleum Company (BAPETCO). It is subject to government and regulatory approvals and is expected to be completed in the second half of 2021, the statement said.
Shell Egypt has been looking for buyers for an exit since 2019, noting that they were in search of selling their western desert assets to focus on gas exploration and expanding their offshore concession areas and deep-water exploration, production and value-added chain of natural gas.
