CAIRO, Aug 25 – BG Delta Limited, a subsidiary of Shell, has reached a final investment decision on Phase 12a of the West Delta Deep Marine concession offshore Egypt, advancing a new development aimed at sustaining natural gas production from the Nile Delta basin.
The project is being developed in partnership with the Egyptian Natural Gas Holding Company (EGAS), the Egyptian General Petroleum Corporation (EGPC) and Malaysia’s Petronas. Phase 12a will involve the drilling and completion of three deepwater gas wells, with production scheduled to start in 2028.
The new wells will be connected to existing subsea infrastructure operated by Burullus Gas Company. Using infrastructure already in place is expected to accelerate the development timeline, improve capital efficiency and reduce the requirement for additional offshore facilities.
Dalia El Gabry, Vice President and Chairperson of Shell Egypt, said the investment reflects the company’s commitment to developing the WDDM concession where technical and commercial conditions support further investment. She added that Shell would use its existing infrastructure and project development expertise to accelerate execution while continuing to work with the Egyptian government and its partners to support the country’s energy requirements.
Phase 12a builds on the development of Phases 10 and 11, which brought six wells into production during 2024 and 2025. The latest phase includes the installation of required facilities, subsea tie-ins, commissioning and connections to existing offshore infrastructure.
Egypt’s Ministry of Petroleum and Mineral Resources said in May 2026 that approximately $350 million had been allocated to the development. The use of existing infrastructure is expected to help contain costs compared with developing an entirely new offshore system.
The West Delta Deep Marine concession is located between 90 and 120 kilometres offshore Egypt, with water depths ranging from 300 to 1,200 metres. Gas production from the concession began in 2003, making it an established component of Egypt’s offshore gas industry.
The investment comes as Egypt seeks to maintain domestic gas supplies and strengthen energy security. Sustaining output from mature offshore assets has become increasingly important as the country balances domestic energy demand with the need to manage its gas resources and reduce pressure on supply.
With the three Phase 12a wells expected to begin production in 2028, the development will extend activity at one of Egypt’s key offshore gas concessions while allowing the partners to maximise existing infrastructure and capital already deployed in the West Delta Deep Marine area.
