BG Group announces deal to increase equity interest in Rosetta concession offshore Egypt
BG Group has announced that it had finalised an agreement for the purchase of Shell Egypt N.V. and Shell Austria G.m.b.H’s (collectively Shell’s) interest in the Rosetta concession offshore Egypt. The transaction is subject to a number of conditions, including Egyptian Government approval.
On 4 June 2004, Shell and Kuwait Foreign Petroleum Exploration Company (KUFPEC) announced that they had reached an agreement for the sale to KUFPEC of Shell’s 40 per cent stake in the BG Group operated Rosetta Concession in the Nile Delta. BG Group’s pre-emption of the sale of Shell’s stake will increase its equity interest in Rosetta from 40 to 80 per cent. The purchase price to BG Group is US$ 235 million, based upon an economic effective date of 1 January 2003.
Commenting on the issue, Stuart Fysh, BG Group’s Executive Vice President and Managing Director, Mediterranean Basin and Africa, said: “This pre-emption provides us with an excellent opportunity to increase our position in a high quality, BG Group operated asset.”
The Rosetta Concession includes the currently producing gas field and onshore/offshore plant, together with three development leases which are currently under negotiation and subject to government approval. These development leases contain discovered, undeveloped fields, from which output will eventually be sold under the Rosetta Gas Sales Agreement. (menareport.com)
© 2004 Mena Report (www.menareport.com)