KEL has signed a farm-out agreement (FOA) with BG International, a subsidiary of British oil and gas company Shell, to acquire the stake in offshore Block 3 in Egypt’s Mediterranean Sea, subject to government and regulatory approvals
Kuwait Foreign Petroleum Exploration (KUFPEC), through its subsidiary KUFPEC Egypt (KEL), is set to acquire a 40% stake in offshore Block 3 in Egypt’s Mediterranean Sea.
KEL has signed a farm-out agreement (FOA) with BG International, a subsidiary of British oil and gas company Shell, to acquire the stake in Egypt’s Block 3.
The FOA, which is subject to government and regulatory approvals, sees that Shell will remain as the operator for the offshore Block 3.
In August this year, Shell Egypt and its partners commenced drilling activities in the Nile Delta Blocks 3 and 4 in the Mediterranean Sea to drill three wells consecutively.
KUFPEC CEO Mohammad Salem Al-Haimer said: “This new partnership in Block 3 empowers KUFPEC to boost its offshore assets and exploration activities in Egypt. KUFPEC is already active in this region as it has been awarded North Ras Kanayes Offshore block in the Mediterranean Sea in 2020.”
Shell vice president and Egypt country chair Khaled Kacem said: “I am very pleased with our new partnership in the Nile Delta Block 3, which will enable us to leverage our joint expertise as we progress the opportunity.
“Concluding this agreement strengthens Shell’s offshore position. The proximity of this block to Shell’s existing assets and other exploration blocks Shell holds in the area will help accelerate the company’s offshore ambitions and support Egypt in meeting its energy supply needs.”
In 2020, Shell’s subsidiary BG Delta, in partnership with PICL (Egypt), acquired North Sidi Gaber Concession (Block 4) and North Al Fanar Concession (Block 6) in the West Nile Delta.
In May last year, BG International agreed to acquire the ExxonMobil-operated Block 3, also known as the north-east El-Amriya offshore area, from ExxonMobil’s subsidiary in Egypt.