CAIRO - Shell Egypt has confirmed that it is continuing to invest here, geologist Ra'ed Saba said, adding that Shell has presented a bid to the Egyptian Natural Gas Holding Company (EGAS) next February for gas exploration in Egyptian water. “The total investment of Shell in Egypt hit about $3.5 billions, including $600 millions in 2011/2012," Saba stated in a conference held late on Wednesday. Saba remarked that Egypt has the highest percentage of the company's investment in the Gulf Area and North Africa, explaining that Shell explored in the North East Mediterranean Deepwater (NEMED) concession for 12 years from 1999 till 2011. “Shell spent over $600 million, drilled nine wells from 2000 to 2007 and found modest amounts of gas. These modest volumes in combination with the water depth and low gas price made it impossible for Shell to start a development." He added that, after completing extensive studies, trying their best to make a development possible, they decided that is was not a viable commercial project and returned the area to the Government in line with the concession agreement. “The discovered fields are more than 300 km away from the more recent discoveries in Israel and Cyprus and there is no connection whatsoever between these finds and Shells activities in NEMED," he elaborated. Saba noted that adding that there is no technical or commercial link between the concession Shell Egypt held and operated in the Mediterranean offshore Egypt and the Leviathan field offshore Israel or Aphrodite discovery offshore Cyprus (discovered 2009-2012). “The gas discoveries Shell Egypt made (drilled in 2003/04) lie in the western part of the NEMED concession, and are located 150 km to the north of Alexandria while the Leviathan field is around 350 km away and more than 100km east of the NEMED boundary," he concluded.
