Global energy major Shell is close to securing the development licence for the Rahmat offshore natural gas field in the deep waters of the Mediterranean northeast of Egypt’s coast, Asharq Business reported on August 26, citing a government official.

According to data from Pharaonic Petroleum, a joint venture between BP (UK) and the Egyptian government, the field holds estimated reserves of 1.3 trillion cubic feet of natural gas and about 80mn barrels of condensates.  

BP previously held the Rahmat concession but relinquished the rights two years ago after its development period expired. Shell submitted a bid in an international tender that closed in early July, covering 13 offshore and onshore blocks, including Rahmat. 

The government official told Asharq that the field’s proximity to Shell’s existing West Burullus concession, where the company is already active, would facilitate potential development and exploration work if the license is awarded.

Shell, in partnership with Malaysia’s state-owned oil and gas company Petronas, is investing around $300mn in drilling operations in the Burullus and West Burullus offshore areas as part of the West Delta Deep Marine concession. In recent months, the company has successfully tied in about 60mn cubic feet per day of gas (mmcfd) to Egypt’s national grid.

Egypt recently also signed an oil and gas exploration agreement with Eni (Italy) and BP to begin exploratory drilling in the Mediterranean, including a planned borehole in the Lake Timsah region, signalling continued efforts to boost domestic output and attract foreign investment. 

The country is also expanding its reliance on Israeli gas exports. It recently finalised a $35bn deal with NewMed to ramp up imports from the Leviathan field, from 4.5bn cubic metres (bcm) annually to about 12 bcm by 2029.