Shell International
gas Ltd (Shell) and
Egypt Kuwait Holding Company (EK
Holding) today announced that they have finalised an Acquisition
Agreement to transfer 18 per cent of NATGAS shares from EK Holding to
Shell Gas BV.
NATGAS is an Egyptian Joint Stock company traded on the Egyptian
Stock Exchange.
The company, which was incorporated in 1998, has been awarded a 20
year concession to study, finance, design, build and operate a natural gas
transportation and distribution network and market natural gas to
residential, commercial and industrial customers, on behalf of the Egyptian
General Petroleum Corporation (EGPC), in the Governorates of Cairo, Giza,
Alexandria, and Beheira, the Sixth of October Industrial City and Borg Al
Arab Industrial City. This follows a Concession Agreement with EGPC,
granted in March 1998.
The agreement was concluded with the support of the Ministry of
Petroleum. His Excellency Eng Sameh Fahmy, the Egyptian Minister of
Petroleum said: “As a regional leader in Natural Gas business with
confirmed reserves in excess of 50 trillion cubic feet, Egypt is well
positioned to promote the vast potentials inherent in the natural gas
industry. The agreement is in line with our policy to strengthen our
domestic gas industry by inviting international companies bringing
additional know-how and financial capabilities. It also demonstrates the
dynamism and attractiveness of our growing domestic gas business. I’m
pleased that EK Holding and Shell have reached an agreement.”
EK Holding is an Egyptian investment company, co-founder of and a
majority shareholder in NATGAS. EK Holding’s transfer of 18 per cent of
shares to Shell is in line with its strategy to strengthen the shareholding
through the participation of major international energy companies.
For Shell, this agreement represents another step in its strategy to
increase its presence in the region and to grow its energy retail business.
Charles Watson, Shell Gas and Power’s Director of
business development
for the region said: “We are delighted to be in NATGAS and to closely work
with EK Holding. We will be looking forward for other such opportunities in
the near future.”
Nasser Al-Kharafi, Chairman of EK Holding said: “This co-operation with a
major international company like Shell capitalises on the positive
investment climate in Egypt. Such co-operation will assist NATGAS in its
expansion plans and will provide Egypt through NATGAS with world class
technology in the natural gas distribution business.”