Shell Sells Egyptian Interest to Petronas

Shell Egypt Deepwater (SEDW) has signed an agreement whereby Petronas Carigali Overseas will farm in 12 percent of SEDW's share in the North East Mediterranean Deepwater (Nemed) block. Shell, which currently holds a 75 percent interest in the Nemed concession, will remain operator of the block.

Shell hit two dry wells in succession at the start of its drilling program in the Nemed block, its largest concession in Egypt. Shell has plans to drill three more wells by the end of 2003 in the block. ExxonMobil holds the remaining 25 percent of the 41,500 sq km block, located offshore Egypt in the Nile Delta area in water depths of 2,600 to 9,800 feet.