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Oil & Gas

Egyptian Oil Ministry refutes reports on BG suspending development projects

Posted: March 24, 2016 at 2:31 pm   /   by   /   comments (0)

bg_groupBG Egypt, a subsidiary of BG Group, a UK company recently taken over by Shell, has reportedly stopped work on some Mediterranean Sea projects, offshore Egypt.

According to a Reuters report on Tuesday, which cited an official at the Egyptian General Petroleum Corp (EGPC), the company couldn’t reach a deal with the Egyptian government on the price of gas. He reportedly said that BG Egypt had abandoned “work at 9A+ and 9B” project and removed the drilling rigs earlier this month.

Offshore Energy Today has reached out to Shell, given that the Anglo/Dutch oil giant now owns assets previously controlled by BG Group.

Oil ministry: No truth in media writings

A Shell spokesperson would not comment on the matter, but pointed to a statement made by Egypt’s Ministry of Oil, in which the media reports on a disagreement with BG have been rebuffed.

According to an article found on Youm7 website, a spokesperson of Egypt’s petroleum ministry said there was no truth in the reports claiming BG had suspended production and development activities in 9A+ and 9B projects. The spokesperson said 9A+ didn’t exist and 9B was never in production.

He said the talks have been underway regarding the Phase 9B regarding the rescheduling of the project’s timeline, adding that since BG and Shell were still in the handover phase, further activities and development would move on with further activities. He also said Shell was committed to all the clauses of the original Concession Agreement signed with BG and Egypt.

(Source: Offshore Energy Today)

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