Shell subsidiary BG International, has signed a farm-out agreement with Kuwait Foreign Petroleum Exploration Company (Kufpec), whereby Kufpec will acquire a 40% stake in Block 3 (NorthEast El-Amriya) in Egyptian waters of the Mediterranean Sea.
The farm-out is subject to government and regulatory approvals, without prejudice to pre-emption rights.
Shell will remain as operator of Block 3.
Kufpec chief executive Mohammad Salem Al-Haimer said that expansion in Egypt’s upstream sector is in line with the company’s 2040 strategy.
“This new partnership in Block 3 empowers Kufpec to boost its offshore assets and exploration activities in Egypt,” he said.
Kufpec is already active in this region as it has been awarded North Ras Kanayes offshore block in the Mediterranean Sea in 2020.
Shell country chairman for Egypt Khaled Kacem said the proximity of this block to its existing assets and other exploration blocks Shell holds in the area will help accelerate the company’s offshore ambitions and support Egypt in meeting its energy supply needs.
In May last year, BG International signed an agreement with ExxonMobil to acquire a 100% stake in the Block 3.
Shell and its partners last month commenced drilling in Nile Delta blocks 3 and 4 in the Mediterranean Sea. The exploration project entails three wells being drilled back to back.