Arab Finance: BG Delta Limited, a subsidiary of British energy company Shell plc, and its partners have reached a final investment decision (FID) on the Phase 12a development project in Egypt’s offshore West Delta Deep Marine (WDDM) concession, as per an emailed press release.

The project, located in the Nile Delta in the Mediterranean Sea, will comprise three deep-water subsea wells, with initial production scheduled for 2028. BG Delta’s partners include the Egyptian Natural Gas Holding Company (EGAS), the Egyptian General Petroleum Corporation (EGPC), and Malaysian energy company Petronas.

Phase 12a will follow the development approach used for Phases 10 and 11. The three wells will be connected to WDDM’s existing subsea network, which is operated by the Burullus Gas Company joint venture.

Using the concession’s existing facilities is expected to shorten the project’s development cycle, improve capital efficiency, and limit the additional operational footprint.

“This investment demonstrates our commitment to maximising the remaining potential in WDDM where the right technical and commercial conditions exist. By leveraging existing infrastructure and our proven development experience, we can accelerate delivery while reinforcing our partnership with the Egyptian government and joint venture partners to help meet Egypt's energy needs,” Dalia Elgabry, Vice President and Country Chair, Shell Egypt, said.

The project forms part of Shell’s strategy to prioritize high-margin resources through disciplined capital allocation and the use of established infrastructure. It is also intended to sustain output from WDDM, one of the Nile Delta’s established offshore gas concessions.