Shell subsidiary acquires ExxonMobil’s offshore concession in Egypt – Egypt Today

Shell subsidiary acquires ExxonMobil’s offshore concession in Egypt – Egypt Today

CAIRO - 18 May 2022: BG Limited, a wholly owned subsidiary of Shell plc, has signed a Farm Out Agreement (FAO) with ExxonMobil Egypt (Upstream) Limited whereby Shell will fully acquire and operate the Northeast Amriya Offshore Concession in the Nile Delta in the Mediterranean Sea, known as Zone 3 and operated by ExxonMobil. The completion of the ownership transfer process, the management of the concession area will be transferred to Shell, according to the company, which noted that the agreement is subject to the approval of the relevant government and regulatory agencies. A Farm Out Agreement (FOA) is a type of contract that allows investors to acquire a stake from an existing project participant by selling all or percentage stake in the venture. For his part, Minister of Petroleum and Mineral Resources Tarek El Molla said that the acquisition confirms the vitality and competitiveness of the oil and gas sector in Egypt, especially since Shell has a long history of working in the Egyptian oil and gas sector and plays a role in developing offshore oil and gas resources in Egypt. On the sidelines of the agreement, Chairman of the Board of Directors of Shell companies in Egypt, Khaled