Shell takes FID on Egypt offshore gas development
I'm LongbridgeAI, I can summarize articles.Shell and partners EGAS, EGPC, and Petronas have taken the Final Investment Decision (FID) for Phase 12a of the West Delta Deep Marine gas project in Egypt. Expected to start production in 2028, the project involves three deep-water subsea wells tied to existing infrastructure. Shell anticipates an internal rate of return above its hurdle rate, supporting Egypt's energy needs.
By Eman Hamed
BG Delta, a subsidiary of Shell (Shell), and its partners the Egyptian Natural Gas Holding Company (EGAS), the Egyptian General Petroleum Corporation (EGPC) and Petronas, announced on Tuesday Final Investment Decision (FID) on the Phase 12a gas project in Egypt's Nile Delta offshore Mediterranean Sea.
Phase 12a, which forms part of the West Delta Deep Marine (WDDM) concession, will deliver three deep-water subsea wells, first production is expected in 2028, Shell Egypt said in a press statement.
The wells will be tied back into WDDM's existing subsea infrastructure operated by Burullus Gas Company joint venture, owned 50 percent by EGPC, 25 percent by BG Delta and 25 percent by PICL Egypt.
“By leveraging existing infrastructure and our proven development experience, we can accelerate delivery while reinforcing our partnership with the Egyptian government and joint venture partners to help meet Egypt's energy needs,” said Dalia Elgabry, Vice President and Country Chair, Shell Egypt.
While Shell did not disclose the project's investment value, it said Phase 12a follows the same development concept and execution model as the previously sanctioned Phase 10 and Phase 11 projects, with a comparable investment envelope.
The company added that the development is expected to generate an internal rate of return (IRR) above the hurdle rate for Shell's Integrated Gas business.The WDDM concession is owned 50 percent by BG Delta, and 50 percent by Petronas International Corporation.
(Writing by Eman Hamed; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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