Netherlands-based British-Dutch oil and gas company Shell will begin operating in its concessions in Egypt in the second half of 2020, according to reports.
Shell won three oil and gas concessions in Egypt earlier in the month of February. Other oil giants such as Eni, BP and Exxon Mobil were also among the winners in one of Egypt’s largest ever oil and gas exploration tenders.
Shell is also planning to bid for exploration rights in Egypt’s oilfields at the Red Sea, according to Gerald Schotman, executive vice president upstream JVs at Shell. He further stated that Shell will bid for oil and gas exploration in the Mediterranean Sea when the bidding round takes place as Shell wants to expand in Egypt.
Egypt’s arrears to foreign companies reached $6.3 billion during the 2011 and 2012 period. However, according to Petroleum Minister Tarek El Molla, arrears to foreign oil companies declined to $900 million as of July this year.
The petroleum minister also pointed out that over the last five years, Egypt’s oil and gas sector has attracted investment of around $30 billion, highest in Egypt’s history.
After Eni, an Italian multinational oil and gas company headquartered in Rome, discovered the giant Zohr field back in 2015, it has attracted many oil and gas companies.
The offshore Zohr gas field is the largest in the Mediterranean and it is estimated that it holds about 30 trillion cubic feet of gas.
Last year, the Egyptian Ministry of Petroleum signed a deep-water oil and gas exploration deal with Shell and Malaysia’s Petronas worth $1 billion. According to the deal, Shell and Petronas will drill eight wells in Egypt’s West Nile Delta region.