Cairn, Cheiron take Shell’s Western Desert assets
CAIRO, September 24, 2021 – Shell has finalised the sale of upstream assets in Egypt’s Western Desert to Cheiron Petroleum Corporation and Cairn Energy, the latter company announced on Friday.
The deal comprises 13 gas-heavy concessions, including five exploration assets operated by Badr El-Din Petroleum Company, a 50:50 joint venture between Shell and Egyptian General Petroleum Corporation.
The acquisition was completed with a base consideration of USD 646 million with additional payments of up to USD 280 million expected before 2024, contingent on oil prices.
The sale was first announced in March 2021.
“The addition of the Western Desert assets to our portfolio is an important first step in expanding and diversifying our producing asset base, alongside offering significant exploration potential,” said Simon Thomson, CEO of Cairn Energy.
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