BG’s Egypt Decline Expected To Continue As Shell Takeover Nears

UK firm BG’s output collapse in Egypt is set to continue, at least until its $70bn takeover by the Anglo-Dutch major Shell is given the green light, most likely at the start of the new year.

BG’s overall production rose by 26% year-on-year in the third quarter of this year to 716 barrels of oil equivalent (boe) per day. This came despite a fall to 43,000 boe/d in Egyptian output. Although the firm does not give a quarterly gas/oil breakdown, for 2014 its Egyptian output was 95% gas from the West Delta Deep Marine (WDDM) and Rosetta fields. This split implies Egyptian gas output of just 246mn cfd for Q3, a mere third of 2012 levels (see graph). (CONTINUED - 788 WORDS)

DATA INSIDE THIS ARTICLE

table Shell Key Mideast Upstream Assets
table BG Key Mideast Upstream Assets