GDF SUEZ Reinforces Its Cooperation With Shell Egypt in Exploration & Production
GDF SUEZ sells a 20% participation in its Alam El Shawish concession to Shell Egypt, thus maintaining a 25% share. A major oil & gas company in Egypt, Shell already operates the gas pipeline close to this concession. Therefore, this deal and the partnership with Shell will allow the partners to accelerate the development of the Alam El Shawish gas discoveries.
Vegas Oil & Gas, currently operator, also sells a 20% stake to Shell Egypt. The new consortium will include Shell Egypt, which will become operator with 40%, GDF SUEZ and Vegas Oil & Gas (35%). Shell's accession as third partner and operator in the concession has been approved by the Egyptian authorities.
The Alam El Shawish concession is located in the western desert area of Egypt and is composed of five licenses. The production phase began in late 2007 and work is already underway to bring Alam El Shawish gas into production.
In Egypt, GDF SUEZ holds stakes in two other offshore licenses: it operates and owns 50% in the very promising West El Burullus area (together with Dana Petroleum), where an initial discovery has been recorded in 2008 and has 10% in the North West Damietta licence operated by Shell (61%).
In liquefaction gas, the Group owns 5% in the first LNG train from the Idku plant that delivers 4.8 bcm of natural gas annually (i.e. 3.6 Mtpa) and buys its total production. GDF SUEZ loads about 60 cargoes per year.
Published 14/01/2010
GDF SUEZ
One of the leading energy providers in the world, GDF SUEZ is active across the entire energy value chain, in electricity and natural gas, upstream to downstream. It develops its businesses (energy, energy services and environment) around a responsible-growth model to take up the great challenges: responding to energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. GDF SUEZ relies on diversified supply sources as well as flexible and high-performance power generation in order to provide innovative energy solutions to individuals, cities and businesses. The Group employs 200,000 people worldwide and achieved revenues of €83.1 billion in 2008.
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