Egypt: Shell acquires interest in Alam El Shawish concession in deal with GDF Suez and Vegas Oil & Gas
14 Jan 2010
GDF SUEZ has sold a 20% participation in its Alam El Shawish concession to Shell Egypt, thus maintaining a 25% share. A major oil & gas company in Egypt, Shell already operates the gas pipeline close to this concession. Therefore, this deal and the partnership with Shell will allow the partners to accelerate the development of the Alam El Shawish gas discoveries.
Privately-owned Vegas Oil & Gas, currently operator, is also selling a 20% stake to Shell Egypt. The new consortium will include Shell Egypt, which will become operator with 40%, GDF SUEZ and Vegas Oil & Gas (35%). Shell's accession as third partner and operator in the concession has been approved by the Egyptian authorities.
The Alam El Shawish concession is located in the western desert area of Egypt and is composed of five licences. The production phase began in late 2007 and work is already underway to bring Alam El Shawish gas into production.
In Egypt, GDF SUEZ holds stakes in two other offshore licenses: it operates and owns 50% in the very promising West El Burullus area (together with Dana Petroleum), where an initial discovery has been recorded in 2008 and has 10% in the North West Damietta licence operated by Shell (61%).
Note: GDF SUEZ (then Gaz de France) acquired its original 45% stake in the Alam El Shawish concession in a deal with Vegas Oil & Gas in November 2007.
Source: GDF SUEZ / energy-pedia