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The history of Shell in Egypt

Shell Egypt time line

1911: The early beginnings

Shell arrived in Egypt in 1911 to operate two concessions in Gemsa and Hurghada. The upstream business was managed by the Anglo Egyptian Oil Company (a joint venture between Shell and British Petroleum), while Shell Company of Egypt dominated all downstream distribution business in Egypt.

1960s: Shell leaves Egypt

In 1964, all Shell interests were nationalised by the government: El Nasr Petroleum Company took over Shell’s refining facilities; Misr Petroleum Company assumed the old Shell marketing and distribution operations and The General Petroleum Company (GPC) took charge of the Exploration and Production arm of AEO.

1970s: Shell E&P returns to Egypt

In 1979, Shell, having returned to Egypt in 1974, discovered the Badr El -Din and Sitra fields. The Badr Petroleum Company, Bapetco, was formed in the early 1980s, as a joint venture between Shell and the Egyptian General Petroleum Corporation (EGPC). This was to be a decisive partnership, as Bapetco assumed responsibility for the development and production of Shell’s fields in Egypt.

1990s: Shell Marketing returns to Egypt

In 1990, Shell Marketing Egypt (SME) was registered to handle all downstream activities including retail, lubricants and marine.

2000 up till now: Embracing the new Millennium

Today Shell continues to explore for oil and gas in Egypt, investing in pioneering ventures, such as Deepwater drilling.

Shell Egypt N.V.

In 2011 Shell celebrated its 100 year presence in Egypt. It first entered the country in 1911 to operate two concessions in Gemsa and Hurghada. Today Shell has a number of joint ventures and interests in Egypt including:

In the upstream, most of our operations are located in the Western Desert and Nile delta. In the Western Desert, our business portfolio includes stakes in 19 oil and gas producing development leases in the Badr El Din & Obaiyed area and four exploration concessions namely; North East Abu El Gharadig, West Sitra, Bed 1 gas and most recently, the West Alam El Shawish concession, which has strengthened our onshore portfolio by acquiring 40% share from Vegas (20%) and GDF (20%) and taking over operatorship.

In the Nile Delta SENV operates North West Damietta in shallow water. Early 2011 Shell relinquished the NEMED concessions after a ten year effort to prove up commercial gas.  In 2009, Shell Egypt joined bidding in the North Damietta Offshore concession in a consortium of BP, Shell and Petronas each with a 33% Shell share. BP is the operator. Shell also secured a 33⅓ % share in the North Tinah Offshore Concession where BP is the operator holding the remaining 66% share.

Badr El Din Petroleum Company (BAPETCo)

The Badr El Din Petroleum Company (BAPETCo), was formed in the early 1980s, as joint venture between Shell and the Egyptian General Petroleum Cooperation. BAPETCo is responsible for the development and production of Shell’s fields in the Western Dessert. After a period of primary recovery, waterflooding development is currently starting and there is active exploratory and appraisal drilling for unconventional gas and light tight oil. Current production levels are around 110,000 barrels/day with a 5-6 rig activity level supporting exploration, appraisal and development drilling.

National Gas Company (NATGAS)

In 2001, Shell embarked on a new gas distribution business taking 18% share in NATGAS, a company transporting gas directly to industrial and domestic customers in key areas throughout Egypt.

Shell Compressed Natural Gas Egypt
Shell Compressed Natural Gas Egypt (SCNGE) was incorporated in 2002.  The company’s main activities are the conversion of vehicles to run on compressed natural gas and dual fuel (mogas/CNG). The project uses existing indigenous resources, supporting Shell’s drive to secure a responsible energy future.

Sustainable Development

As part of our social responsibility towards host communities, Shell Egypt has developed a number of social investment and development programmes. These programmes focus mainly on human capital development of the Egyptian youth; especially enterprise development, which is delivered through Shell’s Intilaaqah Egypt programme, as well as other capability building projects.

Intilaaqah Egypt has helped train thousands of young entrepreneurs across Egypt to either start their own businesses or expand and grow existing businesses. The Intilaaqah Egypt programme is successfully delivered through a reliable development network, whereby the British Council is the main partner and sponsor.

As for the capability building programmes, they entail workshop-based sessions aimed at delivering today's practical business skills to students through lectures and training conducted by experienced Shell hires, Shell graduates and other training moderators. Such programmes include: ‘Step Towards Progress’ (STP) at Cairo University; the ‘Annual Conference for Engineering Students’ (ACES) & the ‘Give and Gain’ programme at Ain Shams University, the ‘Real Life Project’ at the American University of Cairo and the ‘Al Amal Programme’ (Hope Programme) which was initiated by the Egyptian Geophysical Society and later sponsored by Shell and other International Oil Companies (IOCs) for geo-science graduates.

Shell Egypt’s social investment also focuses on Road Safety. In light of this theme, hundreds of school bus drivers have taken the ‘Safe Driving’ awareness sessions and practical training. In addition, Shell Egypt has taken different measures to promote and raise awareness of the importance of road safety among children at public schools and to the general public. Working with the General Authority for Road, Bridges and Land Transport, Shell has also installed 180 reflective road signs at 60 exists to enhance the safety of driving at night along the ring road.