(Alliance News) - Royal Dutch Shell PLC on Friday said its subsidiaries have completed the sale of upstream assets in Egypt's Western Desert to subsidiaries of Cheiron Petroleum Corp and Cairn Energy PLC.
Capricorn Egypt, a wholly owned subsidiary of Cairn, acquired 50% of the assets from Shell Egypt NV and Shell Austria GmbH, with the remaining 50% acquired by Cheiron subsidiaries.
The transaction was agreed for a base consideration of USD646 million and additional payments of up to USD280 million between 2021 and 2024, contingent on the oil price and the results of further exploration.
With this transaction, Shell said it is refocusing its business in Egypt on its existing infrastructure position in the West Delta Deep Marine, the Harmattan Deep project and exploration acreage in the new seven blocks in the Nile Delta, Midstream and Downstream.
Meanwhile, Cairn said the gas-weighted portfolio, in a region with strong demand growth, offers low cost production, near-term development, owned infrastructure and significant exploration potential.
"The addition of the Western Desert assets to our portfolio is an important first step in expanding and diversifying our producing asset base, alongside offering significant exploration potential," said Cairn Chief Executive Simon Thomson.
"We look forward to working alongside our partners to deliver the attractive growth opportunities the assets provide," added Thomson.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Capricorn Energy PLC (CNE)