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Shell appoints Citi for $1 bln sale of Egypt assets -sources

Credit: REUTERS/LUCY NICHOLSON

Royal Dutch Shell has appointed investment bank Citi to run the sale of its onshore Egyptian oil and gas assets which could fetch around $1 billion, sources close to the process said.

By Ron Bousso

LONDON, Nov 15 (Reuters) - Royal Dutch Shell RDSa.L has appointed investment bank Citi to run the sale of its onshore Egyptian oil and gas assets which could fetch around $1 billion, sources close to the process said.

The sale process is expected to be officially launched at the end of November, the sources said.

Shell said last month it plans to sell its onshore upstream assets in the Western Desert to focus on expanding its Egyptian offshore gas exploration.

The Western Desert portfolio includes stakes in 19 oil and gas leases of which Shell's working interest included production of around 100,000 barrels of oil equivalent per day last year, one of the sources said.

Shell declined to comment. Citi did not reply to a request for comment.

Egypt's oil and gas sector has seen a rapid expansion in recent years after the discovery of vast offshore gas reserves has drawn major investments from international companies including Eni ENI.MI and BP BP.L.

At the same time, Egypt's ageing oil and gas assets have changed hands. BP earlier this year sold its decades-old stake in the Gulf of Suez Petroleum Company (GUPCO) to Dubai-based Dragon Oil Ltd.

(Reporting by Ron Bousso; editing by David Evans)

((ron.bousso@thomsonreuters.com; +44 (0) 2075422161; Reuters Messaging: ron.bousso.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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