pandct.com: Shell and Kuwait Foreign Petroleum Exploration Company announce agreement on Rosetta concession
7 June 04
Shell Egypt NV and Shell Austria GmbH (collectively “Shell”) and Kuwait Foreign Petroleum Exploration Company ksc (KUFPEC) today announced that an agreement has been reached for the sale to KUFPEC (R) Ltd (a wholly owned subsidiary of KUFPEC) of Shell’s 40 per cent stake in the BG operated Rosetta Concession in the Nile Delta, some 65 kilometres offshore Egypt, including the currently producing gas field and onshore/offshore plant.
The transaction is expected to be completed later this year, subject to all necessary Egyptian and Kuwaiti approvals, as well as the pre-emption and approval rights of partners in the concession. The terms of the transaction remain commercially confidential.
Mr Bader Al-Khashti, KUFPEC’s Chairman and Managing Director, said: “The acquisition of these assets represents a further step in KUFPEC’s drive to build a strategic position in Egypt, consistent with our aggressive expansion plan. The Nile Delta is a world-class gas province and KUFPEC looks forward to playing an active part in development of this area.”
Shell Exploration & Production’s CEO for the Middle East, Russia and CIS, Ron van den Berg, said: “This agreement is a win for both parties, and reflects Shell’s commitment to actively managing our portfolio in order to ensure that we have the best possible combination of assets for our shareholders. While the Rosetta Concession is an attractive asset, it does not fit with our strategic aspirations for the region. We remain committed to Egypt, and have recently announced three exploration discoveries there: two in the North East Mediterranean Deepwater (NEMED) Concession and one in the North East Abu Gharadig (NEAG) Concession in the Western Desert.”
Shell will retain its holdings in the Western Desert, Nile Delta and NEMED concessions in Egypt’s upstream. In addition the Group has large investments in the downstream market in Egypt through its interest in Shell Marketing Egypt, Natgas and Fayum.