Page 8 - AfrOil Week 11 2021

AfrOil INVESTMENT AfrOil

Shell Egypt to sell upstream

assets in Western Desert

EGYPT SHELL Egypt, a subsidiary of Royal Dutch Shell, production company focusing on revitalising
agreed to sell its upstream assets in Egypt’s West- and optimising production in mature oil and
ern Desert to a consortium comprised of subsid- gas fields from its robust base in the Egyptian
iaries of Cheiron Petroleum and Cairn Energy mature fields region. Cairn is a London-listed
for $646mn and additional payments of up to independent oil and gas producer focused on
$280mn between 2021 and 2024. The additional offshore and onshore fields in UK, Mexico, Israel
payment is contingent on the oil price and the and Côte d’Ivoire. ™
results of further exploration.
The package of assets consists of Shell Egypt’s
interest in 13 onshore concessions and the com-
pany’s 50% non-operator interest in the Badr
El-Din Petroleum Co. (BAPETCO).
Producing assets operated by BAPETCO
include a 100% interest in the Obaiyed, North
Umbaraka, Badr el Din fields, and North Alam
El Shawish and North Matruh, in addition to a
52% interest in North East Abu Gharadig and a
40% interest in Alam El Shawish.
The disposal of onshore concessions will ena-
ble Shell to focus on its offshore exploration and
integrated value chain in Egypt, including seven
new blocks in the Nile Delta, West Mediterra-
nean and Red Sea.
Cheiron is an independent exploration and Shell Egypt now has a 52% stake in North East Abu Gharadig (Photo: BAPETCO)

FAR shareholders will discuss

Sangomar stake sale on April 15

SENEGAL AUSTRALIA’S FAR Ltd has set a date for the ($162.33mn) for FAR, provided that the RSSD
meeting at which its shareholders are due to stake remained in the latter company’s portfolio
consider the sale of a minority stake in RSSD, of assets.
the consortium set up to explore and develop the In its March 15 statement, the Australian
Sangomar block offshore Senegal. The meeting company described both of the proposals as
will take place on April 15, the company said in incomplete.
a statement dated March 15. It also said it intended to furnish sharehold-
FAR had previously scheduled the meeting ers with more information ahead of the meeting
for February 18, but it postponed the event in and would give investors who had already voted
order to consider two non-binding buy-out a chance to revise their ballots.
offers. At the time, it said it was taking this step But it also indicated that it did not expect
because it had recently received a conditional, the offers to sway it from its earlier announced
non-binding offer from Russia’s Lukoil to pay decision to sell most of its stake in RSSD to
AUD220mn ($170.38mn) for 100% of equity in Woodside Energy (Australia), the operator of
FAR itself. the Sangomar project. “FAR intends to proceed
Lukoil is the second party to have made a with the Woodside Sale if shareholders provide
non-binding, indicative proposal for the take- their approval,” the statement said.
over of FAR. The first was Remus Horizons, FAR attempted last year to sell its holdings in
a private investment fund, which said in late RSSD to ONGC Videsh Vankorneft, a subsidi-
2020 that it was willing to pay AUD209.6mn ary of India’s ONGC Videsh Ltd (OVL).

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