Shell has officially approved the final investment decision (FID) to develop Block 12a within the West Delta Deepwater Project (WDDP) in Egypt. The announcement, issued on Tuesday, August 25, 2026, marks a significant step in expanding natural gas output from one of the region’s most established offshore fields. The development plan involves drilling three new gas wells in deepwater areas, with operations scheduled to begin supplying gas to the Egyptian market by 2028.
Leveraging Existing Infrastructure
A central component of the Block 12a strategy is the utilization of existing marine infrastructure to accelerate project timelines and optimize capital efficiency. The new wells will be connected to subsea facilities currently operated by Al-Burullus Gas Company. This approach allows the consortium to bypass the lengthy processes associated with constructing new platforms, thereby reducing execution duration and enhancing the speed at which production can start.
The project builds upon the successful implementation models used in previous phases of the WDDP. By relying on already installed production assets, the initiative aims to minimize the operational footprint in the Mediterranean Sea while improving the overall return on invested capital. This strategy aligns with Shell’s broader corporate objective to direct investments toward resources that offer high economic viability and to maximize the utility of existing assets.
Partnership Structure and Strategic Goals
The development is being executed through a collaborative partnership involving several key entities. The consortium includes BG Delta Limited, an affiliate of Shell, alongside the Egyptian Natural Gas Holding Company (EGAS), the Egyptian General Petroleum Corporation (EGPC), and Malaysia’s Petronas. This structure underscores the continued commitment of international and state-owned partners to cooperation in Egypt’s offshore gas sector.
Dalia El-Gabry, Chairperson of Shell Egypt, emphasized that the investment reflects the company’s dedication to maximizing remaining potential where technical and commercial conditions are favorable. She highlighted the importance of accelerating execution and strengthening partnerships with the government and project stakeholders to serve the local market effectively. The move is designed to support Egypt’s energy security and reinforce the country’s regional standing as a reliable energy supplier over the long term.
Recent Production Milestones
This decision follows recent successes in boosting local supply. In August 2025, Al-Burullus Gas Company added two new wells to the production map, contributing approximately 60 million cubic feet per day. Additionally, the completion of the “Savoy South Central DP” well in Block 11 began producing around 50 million cubic feet of gas daily, along with 800 barrels of condensates. Another well, Scarab D4, was returned to production, adding roughly 10 million cubic feet per day.
Karim Badawi, Minister of Petroleum and Mineral Resources, noted that the execution of Blocks 10 and 11 represents a tangible result of measures aimed at restoring investor confidence and increasing domestic gas output. These developments are critical for meeting peak summer demand and reducing reliance on imports, ensuring stable supplies for households and industrial sectors across Egypt.
This story was produced in the newsroom from the disclosed sources named above.
