German oil and gas company Wintershall Dea has decided to divest its interest in the Gulf of Suez concession after 38 years of production, effective as of 1 January 2022, due to its focus on natural gas as part of the company’s energy transitions strategy.
Wintershall Dea announced on Thursday it is closing this chapter of its long oil production history in Egypt .
“The Gulf of Suez concession will always be a proud part of our history in Egypt. It was the foundation upon which we have built a successful, long-term business here, and it has made us a major contributor to Egypt’s energy supply,” said Sameh Sabry , Senior Vice President and Managing Director of Wintershall Dea Egypt.
“Now the time is right for Wintershall Dea to focus even more on where we can best deliver value with our significant ongoing investment in Egypt,” Sabry added.
However, the Wintershall Dea story in Egypt continues as the company holds 17.25 per cent of the major offshore West Nile Delta concession, one of the largest Egyptian gas projects, and as the operator is producing at its onshore Nile Delta Disouq concession. With exploration at East Damanhour in the onshore Nile Delta, Wintershall Dea continues to invest in its future in Egypt.
The decision to conclude the involvement in the oil production at the Gulf of Suez is part of Wintershall Dea’s corporate strategy, with the company’s Energy Transition Pathway and its focus on natural gas. Natural gas accounts for the majority of the global portfolio of Wintershall Dea.
According to the company, natural gas will have a growing role in achieving climate targets as a climate-friendly conventional energy source. It is affordable, flexible in its use, and can help to significantly reduce overall emissions, if used as a substitute for coal in generating electricity and heat. Additionally, it can be used to generate climate-friendly hydrogen , the company said.
Dawn Summers , Wintershall Dea’s Chief Operating Officer and responsible board member for Egypt, emphasised: “Egypt is one of our established core countries. We are very optimistic about Egypt’s future role as a regional gas hub and will continue to be a major German investor to the country.”