Anglo-Dutch major Shell has finally managed to find a buyer for its swathe of assets in Egypt’s Western Desert after putting the acreage up for sale in October 2019 (MEES, 25 October 2019).
Having initially asked for $1bn for the assets which produced 83,000 boe/d on a working interest basis (30,700 b/d crude and 293mn cfd gas), for 2020 it has accepted a bid of $646mn from a 50:50 JV of Egyptian independent Cheiron and the UK’s Cairn Energy. Payments under the 8 March deal could potentially rise by up to $280mn based on 2021-24 Brent prices ($50mn for each year that Brent averages above $55/B) and exploration success (up to $80mn). (CONTINUED - 1948 WORDS)
