Royal Dutch Shell will halt gas production from Egypt’s Rosetta field in Rashid concession, in July 2017. The field produces 40bcf/d of gas, yet Shell will cease investments in the development while dues owed by the Egyptian government continue to accumulate, reported Daily News Egypt.
A source with the Egyptian Natural Gas Holding Company (EGAS) stated that the development of Rosetta gas field required significant funds. However, the field is not proving economically viable to the foreign partner according to current gas price, informed Al Borsa. This came as Shell has allocated $22.7m for the operational costs of Rosetta field, with the company further allocating $1.4m for field maintenance, excluding development activates.
Meanwhile, UK’s BP had purchased the 425mcf/d Rosetta gas treatment plant in Rashid from Shell for $128m and received the facility in April 2016. Accordingly, BP started preparing to link production of Fayoum and Giza fields to supply the Rosetta plant with 420mcf/d of gas by 2019. Furthermore, Shell moved Rosetta field production to the Burullus gas plant.