Shell International Gas Ltd (Shell) and Egypt Kuwait Holding Company (EK Holding) today announced that they have finalized an Acquisition Agreement to transfer 18 per cent of NATGAS shares from EK Holding to Shell Gas BV.
NATGAS is an Egyptian Joint Stock company traded on the Egyptian Stock Exchange.
The company, which was incorporated in 1998, has been awarded a 20 year concession to study, finance, design, build and operate a natural gas transportation and distribution network and market natural gas to residential, commercial and industrial customers, on behalf of the Egyptian General Petroleum Corporation (EGPC), in the Governorates of Cairo, Giza, Alexandria, and Beheira, the Sixth of October Industrial City and Borg Al Arab Industrial City.
This follows a Concession Agreement with EGPC, granted in March 1998.
The agreement was concluded with the support of the Ministry of Petroleum. His Excellency Eng Sameh Fahmy, the Egyptian Minister of Petroleum said: “As a regional leader in Natural Gas business with confirmed reserves in excess of 50 trillion cubic feet, Egypt is well positioned to promote the vast potentials inherent in the natural gas industry.
The agreement is in line with our policy to strengthen our domestic gas industry by inviting international companies bringing additional know-how and financial capabilities.
It also demonstrates the dynamism and attractiveness of our growing domestic gas business. I’m pleased that EK Holding and Shell have reached an agreement.”
EK Holding is an Egyptian investment company, co-founder of and a majority shareholder in NATGAS. EK Holding’s transfer of 18 per cent of shares to Shell is in line with its strategy to strengthen the shareholding through the participation of major international energy companies.
For Shell, this agreement represents another step in its strategy to increase its presence in the region and to grow its energy retail business.
Charles Watson, Shell Gas and Power’s Director of Business Development for the region said: “We are delighted to be in NATGAS and to closely work with EK Holding. We will be looking forward for other such opportunities in the near future.”
Nasser Al-Kharafi, Chairman of EK Holding said: “This co-operation with a major international company like Shell capitalizes on the positive investment climate in Egypt.
Such co-operation will assist NATGAS in its expansion plans and will provide Egypt through NATGAS with world class technology in the natural gas distribution business.”
© 2001 Mena Report (www.menareport.com )