By Jaime Llinares Taboada

 

Royal Dutch Shell PLC said Friday that it has completed the sale of its Western Desert assets onshore Egypt to Cairn Energy PLC and Cheiron Petroleum Corporation for up to $926 million.

The price includes a base consideration of $646 million and up to $280 million subject to oil price and exploration milestones between 2021 and 2024.

Cairn and Cheiron have acquired interests in 13 concessions which averaged net production of 83,000 oil-equivalent barrels a day in 2020, of which 63% was gas, and 226 million barrels of oil-equivalent 2P (proven and probable) reserves.

Shell said that the transaction refocuses its business in Egypt and that it remains a leading player in the country. The completion of the sale, which was first announced in March, comes days after Shell signed another deal to sell its U.S. Permian Basin oil production business to ConocoPhillips for $9.5 billion.

Cairn Energy said that the acquisition of Shell's gas-weighted portfolio offers low-cost production, near-term development, owned infrastructure and significant exploration potential in a region with strong gas demand growth.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

September 24, 2021 03:29 ET (07:29 GMT)

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