Shell strikes US$926m deal to sell oil assets in Egyptian desert

[CAIRO] Royal Dutch Shell has agreed to sell its oil assets in Egypt's Western Desert to Cairn Energy and a local company for as much as US$926 million, as the energy major focuses more on offshore production and natural gas.

Edinburgh-based Cairn and Cheiron Petroleum, based in Cairo, will buy the assets for US$646 million and make additional payments of up to US$280 million by 2024, "contingent on the oil price and the results of further exploration," Shell said in a statement.

The deal "will enable Shell to concentrate on its offshore exploration and integrated value chain in Egypt, including seven new blocks in the Nile Delta, West Mediterranean and Red Sea," the company said. "It will help Egypt maximise the potential of its onshore assets through new investment." The deal consists of Shell Egypt's interest in 13 onshore concessions and in the Badr El-Din Petroleum.

BLOOMBERG