Shell Operations in Egypt

=Historical Overview=

Shell first entered Egypt in 1911 to operate two concessions in Gemsa and Hurghada. Its interests in Egypt were nationalized in 1964, including its refining facilities, marketing and distribution operations and its exploration and production activities. Shell E&P (Exploration and Production) returned to Egypt in 1974 and in 1979 discovered the Badr El Din and Sitra fields, and formed the Badr Petroleum Company (Bapetco) as a joint venture with the Egyptian General Petroleum Corporation (EGPC) in the early 1980s. Bapetco assumed responsibility for the development and production of Shell’s Egyptian fields. In 1990 Shell's marketing subsidiary, Shell Marketing Egypt (SME), returned to the country and registered to handle all of Shell's downstream activities.

=Current Operations=

Shell Egypt's business spans upstream oil and gas exploration and downstream marketing services. As of mid-2013, the company's activities in Egypt produced around 110,000 barrels of oil equivalent per day.

Areas of Upstream Operation
Most of Shell's upstream activities in Egypt are in the Western Desert and Nile delta. In the Western Desert, the company holds stakes in 19 oil and gas producing development leases in the Badr El Din & Obaiyed area, along with four exploration concessions: North East Abu El Gharadig, West Sitra, Bed 1 gas and the West Alam El Shawish concession.

In the Nile delta, Shell operates the North West Damietta field in shallow water. In 2009, Shell joined bidding in the North Damietta Offshore concession in a consortium together with BP and Petronas, each with a 33 percent share. The consortium won the license and BP is the field's operator. Shell also secured a 33⅓ percent share in the North Tinah offshore concession, where BP is operator with the remaining 66 percent share. In early 2011, Shell relinquished the North East Mediterranean (NEMED) concessions in the Nile delta after a ten year effort failed to prove commercial gas reserves.

Badr El Din Petroleum Company (Bapetco)
Bapetco, Shell's joint venture with EGPC in which each company owns a 50 percent share, is responsible for the development and production of Shell’s fields in the Western Desert. According to the Shell website in mid-2013 Bapetco is also conducting active exploratory and appraisal drilling for unconventional gas and light tight oil.

Marketing and Gas Distribution Companies
In the downstream, Shell Marketing Egypt (SME) delivers service and products through retail sites, commercial lubricants and bunkering operations, referring to the provision of fuel for shipping operations.

In 2001 Shell acquired an 18% stake in National Gas Company (Natgas), a Egyptian Joint Stock company which had been awarded a 20-year concession to study, finance, design, build, operate and manage natural gas transportation and distribution network. Shell incorporated a new subsidiary, Shell Compressed Natural Gas Egypt (SCNGE), in 2002, tasked with the conversion of vehicles to run on compressed natural gas.

=References=