Shell Completes Sale of Egyptian Assets to Cairn, Cheiron
September 24 2021 - 3:44AM
Dow Jones News
By Jaime Llinares Taboada
Royal Dutch Shell PLC said Friday that it has completed the sale
of its Western Desert assets onshore Egypt to Cairn Energy PLC and
Cheiron Petroleum Corporation for up to $926 million.
The price includes a base consideration of $646 million and up
to $280 million subject to oil price and exploration milestones
between 2021 and 2024.
Cairn and Cheiron have acquired interests in 13 concessions
which averaged net production of 83,000 oil-equivalent barrels a
day in 2020, of which 63% was gas, and 226 million barrels of
oil-equivalent 2P (proven and probable) reserves.
Shell said that the transaction refocuses its business in Egypt
and that it remains a leading player in the country. The completion
of the sale, which was first announced in March, comes days after
Shell signed another deal to sell its U.S. Permian Basin oil
production business to ConocoPhillips for $9.5 billion.
Cairn Energy said that the acquisition of Shell's gas-weighted
portfolio offers low-cost production, near-term development, owned
infrastructure and significant exploration potential in a region
with strong gas demand growth.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
September 24, 2021 03:29 ET (07:29 GMT)
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