Shell
and KUFPEC announce agreement on Rosetta concession
Posted: 04 June 2004
Shell Egypt NV and Shell Austria GmbH (collectively “Shell”)
and Kuwait Foreign Petroleum Exploration Company ksc (KUFPEC) 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.
For more information see www.shell.com 
Posted by Richard Price,
Editor Pipeline Magazine
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