Shell Egypt Embarks on New Natural Gas Wells Drilling
Deal News | Jan 22, 2025 | Zawya
Shell Egypt, along with its partners, is poised to begin drilling three new natural gas wells by the end of January 2024, as part of the 11th phase of the West Delta Deep Marine (WDDM) project in the Mediterranean Sea. This initiative is expected to add approximately 150 million cubic feet of natural gas per day to Egypt's production by the end of 2025. Scheduled within an investment framework of around $230 million, the project will employ the Scarabeo 9 offshore drilling rig, which has already seen success in phase 10 of the development. This drilling activity is a product of a new commercial agreement between Shell, bp Plc, and the Egyptian Natural Gas Holding Company (EGAS), focusing on the pricing of gas from the new wells. Additionally, production from the Harmattan natural gas field is anticipated to start during the first quarter of 2026, demonstrating further development in Egypt's natural gas resources.
Sectors
- Energy
- Oil & Gas
Geography
- Egypt – The drilling activity and natural gas projects discussed are located in Egypt, specifically within the Mediterranean Sea region.
Industry
- Energy – The article focuses on the exploration and drilling of natural gas wells, which are part of the energy sector, particularly natural gas production.
- Oil & Gas – Shell Egypt's activities in drilling new natural gas wells relate directly to the Oil & Gas industry, emphasizing natural gas extraction and production.
Financials
- 230 million – The initial investment amount for the drilling of three new natural gas wells.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Shell Egypt | Lead company responsible for drilling | Company | Shell Egypt is engaged in exploring and drilling natural gas wells as part of the identified project. |
| Egyptian Natural Gas Holding Company (EGAS) | Government partner and regulatory body | Government | EGAS is involved in the commercial agreement regarding gas pricing and regulations for new wells. |
| bp Plc | Partner company | Company | In collaboration with Shell, bp Plc plans to begin production from the Harmattan gas field. |
| Scarabeo 9 | Offshore drilling rig | Other | Drilling rig to be used for this project, previously utilized successfully in Phase 10. |