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.
Recommended Reading
BP: Ukraine War Likely to Speed Decline in Fossil Fuel Use
2023-02-01 - The fallout from Russia’s invasion of Ukraine includes a global movement away from imported fossil fuels toward domestically produced renewables, BP said in its annual Energy Outlook.
EIA Chops Price Forecasts for Oil, Gas
2023-01-11 - Weakened U.S. and global economies, and higher production, will lead to a 10.6% cut for WTI and 9.8% reduction for Henry Hub natural gas this year, according to the Energy Information Administration.
Commodity Prices in 2023: EIA, World Bank, Others Weigh In
2022-12-16 - Prices for crude oil and natural gas are expected to decline in 2023 compared to 2022 according to forecasts from the Energy Information Administration, World Bank and other institutions.
Analysts: Natural Gas Prices to Slump Through Late 2024
2022-12-12 - Until a slew of LNG export terminals come online, gas production will be high and prices will be low, East Daley says in its annual report.
Dallas Fed: Oil and Gas Sector Still Optimistic, Just Not as Much
2022-12-29 - Growth continued in Q4, the fed’s quarterly survey found, but the numbers were diminished from Q3.