Royal Dutch Shell Plc entered into an agreement to sell upstream assets in Egypt’s Western Desert to Cheiron Petroleum Corp. and Cairn Energy Plc for up to $926 million, the company said on March 9.
The deal includes Shell Egypt’s stake in 13 onshore concessions and its share in the Badr El-Din Petroleum Co. (BAPETCO). It is subject to government and regulatory approvals and is expected to be completed in the second half of 2021, the statement said.
It sets a base price of $646 million, with additional payments of up to $280 million between 2021 and 2024, subject to the oil price and exploration results.
“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.
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