Shell Offers Gail Stake in Gas Field Offshore Egypt

Shell has offered Indian state-run gas firm Gail a 15 percent stake in a natural gas field offshore Egypt. "Shell has offered us a minority stake in an exploration block in Egypt. We are evaluating the proposal," Gail chairman and managing director Proshanto Banerjee told reporters.

Gail is evaluating participation in natural gas exploration and production and planning city gas projects in several countries to expand its international operations.

Without giving further details, he said the offer was part of the Memorandum of Cooperation Gail signed with Shell in January this year for importation of LNG and development of import facilities, development of pipeline infrastructure, marketing of regassified LNG and CNG transportation by ship.

Gail, which already has a 10 percent stake in the A-1 gas field off Myanmar's northwestern coast, is also talking to Shell for picking up stake in two city gas distribution companies in Egypt.

"Shell has offered us 19 percent equity in Fayum gas company and 10 percent equity in Shell CNG company (both in Egypt). Financial, legal and technical due diligence studies for both have been completed and valuation and other terms and conditions for investment were under preparation," he said.

The Fayum gas company supplies piped natural gas for domestic consumption while Shell CNG retails Compressed Natural Gas (CNG) to automobiles in Cairo.