Shell hits gas offshore Egypt

LNG giant Shell has discovered natural gas in Egypt’s North East El-Amriya block, located in the Mediterranean Sea.

Shell’s unit in Egypt said in a statement it had successfully completed the drilling of the first well in its three-well exploration campaign, Mina West, in the North East El-Amriya block.

Drilling activities took place at a water depth of around 250 meters below sea level in the offshore Nile Delta, with primary data confirming the presence of gas-bearing reservoir, according to Shell Egypt.

The company said that further evaluation of the acquired data is required to determine the size and recoverable potential of the discovery.

Shell has contracted the Stena Drilling for mobile offshore drilling unit – Stena Forth rig – to carry out the drilling campaign.

“Important step forward” for Shell Egypt

The company’s head in Egypt, Khaled Kacem, said this discovery is “an important step forward for Shell Egypt bolstering our growth aspirations and ongoing commitment as a key partner in Egypt’s energy landscape.”

He said successful delivery of the company’s current exploration campaign is part of Shell Egypt’s growth strategy.

“Shell, together with its partners, will continue to work towards safely and efficiently reaching the development phase of the block,” Kacem said.

In September this year, Shell signed a farm out agreement with Kuwait Foreign Petroleum Exploration Company (KUFPEC) under which the latter acquired a 40 percent stake in North East El-Amriya block, with Shell holding the remaining 60 percent stake, of the partner’s share with the Egyptian Natural Gas Holding Company (EGAS).

Shell has been active in Egypt for over 100 years and its integrated portfolio includes exploration, upstream operations, LNG through its Egyptian LNG (ELNG) JV, and the lubricants business through Shell Lubricants Egypt.

The company operates the 7.2 mtpa ELNG terminal in Idku, east of Alexandria, along with its partners Egypt’s EGAS and EGPC, Malaysia’s Petronas, and France’s TotalEnergies.

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