Royal Dutch Shell plc

03/09/2021 | Press release | Distributed by Public on 03/09/2021 01:10

Shell signs an agreement for its onshore upstream interests in Egypt with Cheiron Petroleum Corporation and Cairn Energy PLC

The transaction is subject to government and regulatory approvals and is expected to complete in the second half of 2021.

The package of assets consists of Shell Egypt's interest in 13 onshore concessions and the company's share in Badr El-Din Petroleum Company (BAPETCO).

'Today's announcement is consistent with Shell's efforts to shift our Upstream portfolio to one that is more focused, resilient and competitive' said Wael Sawan, Shell's Upstream Director.

'The deal will deliver value to Shell and to Egypt. 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. It will help Egypt maximize the potential of its onshore assets through new investment, helping secure energy and revenue for years to come.'

Note to editors:

1. About Shell in Egypt

Shell Egypt N.V. ('SENV') and Shell Austria GmbH ('SAG') (together referred to as 'Shell' or 'Sellers') are wholly owned by the Royal Dutch Shell plc. Shell has been active in Egypt for over 100 years and remains a leading player in country with investments spanning the value chain. Shell's integrated portfolio includes exploration, upstream operations, LNG through our Egyptian LNG (ELNG) joint-venture, and the lubricants business through Shell Lubricants Egypt (SLE).

For more info, please visit: www.shell.com

2. The transaction comprises the following assets:

  • a 50% non-operator interest Badr El-Din Petroleum Company (BAPETCO)
  • Producing assets operated by BAPETCO
    • a 100% interest in Obaiyed, North Umbaraka, Badr el Din (BED) fields, Sitra, North Alam El Shawish, and North Matruh
    • a 52% interest in North East Abu Gharadig where Shell Egypt is partnered with Apache Abu Gharadig Corporation LDC
    • a 40% interest in Alam El Shawish where Shell Egypt is partnered with North Petroleum International Company S.A. and Neptune Energy Alam El Shawish B.V.
  • The Shell Egypt-operated onshore exploration assets (100% Shell): South East Horus, West El Fayum, and South Abu Sennan.

3. Shell Egypt has recently acquired seven new offshore concessions

  • In the West Mediterranean, North Marina and North Cleopatra in the Herodotus Basin as operator through its subsidiary BG Delta Limited with partners Chevron through its subsidiaries (Noble Energy Egypt I B.V & Noble Egypt Energy II B.V) and Tharwa Petroleum Company S.A.E, and non-operator of North Ras Kanais in partnership with Total E&P Egypt Offshore Western Desert B.V (operator), Tharwa Petroleum Company and Kufpec Egypt Limited.
  • In the Red Sea, Shell Exploration & Production (93) BV has acquired two concessions as operator: Block 4 in partnership with Mubadala Petroleum (Red Sea Block 4) Holding RSC Limited and Tharwa Petroleum Company S.A.E., and Block 3 with Tharwa Petroleum Company.
  • In the West Nile Delta, BG Delta Limited acquired last year Blocks 4 and 6 as operator in partnership with PICL (Egypt) Corporation LTD and for which seismic activities are already underway.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this press release 'Shell', 'Shell Group' and 'Royal Dutch Shell' are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words 'we', 'us' and 'our' are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ''Subsidiaries'', 'Shell subsidiaries' and 'Shell companies' as used in this press release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as 'joint ventures' and 'joint operations', respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as 'associates'. The term 'Shell interest' is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This press release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as 'aim', 'ambition', ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''goals'', ''intend'', ''may'', ''objectives'', ''outlook'', ''plan'', ''probably'', ''project'', ''risks'', 'schedule', ''seek'', ''should'', ''target'', ''will'' and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell's Form 20-F for the year ended December 31, 2019 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this press release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, 9 March 2021. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

We may have used certain terms, such as resources, in this press release that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.