ExxonMobil Egypt signed a Farm-Out Agreement (FOA) with BG International Limited, a Shell plc subsidiary, to acquire 100 percent ownership in the ExxonMobil-operated north-eastern El-Amriya Offshore Area in the Mediterranean Sea, also known as Block 3. According to the agreement, BG will become the operator, pending to regulatory permissions from the Egyptian government.
Minister of Petroleum and Mineral Resources Tarek El-Molla said the agreement is a significant development that illustrates Egypt’s oil and gas sector’s vitality and competitiveness.
Commenting on the conclusion of this agreement, H.E. Minister of Petroleum and Mineral Resources Eng. Tarek El-Molla said: “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.”
Khaled Kacem, Shell’s Vice President & Country Chair for Egypt, said, “I am pleased to conclude this agreement, which demonstrates Shell’s deep commitment to Egypt. 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.”
“We have significantly enhanced our presence in the offshore Mediterranean over the last three years and acquiring this new block is an important milestone towards achieving our growth strategy.”
In the West Nile Delta, BG Delta Limited – a company wholly owned by Shell – acquired North Sidi Gaber Concession (Blocks 4) and North Al Fanar Concession Block 6) in 2020, as operator, in partnership with PICL (Egypt) Corporation LTD for which seismic was acquired and the portfolio maturation is underway.
Khaled Kacem Shell’s vice president and country chair for Egypt said the deal demonstrates Shell’s deep commitment to Egypt and strengthens the company’s portfolio of offshore activities as well as supports its 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 the first well during the first half of 2023,” he explained.
In 2020, BG Delta Limited a company owned by Shell acquired the right to operate the Sidi Gaber Concession (Block 4) and Al-Fanar Concession (Block 6) in partnership with PICL (Egypt) Corporation LTD, acquiring seismic rights with portfolio maturation underway.