Shell and partners approve Phase 12a drilling programme
BG Delta Limited, Shell’s Egyptian subsidiary, has taken a final investment decision on Phase 12a of the West Delta Deep Marine concession. Partners include EGAS, the Egyptian General Petroleum Corporation, and Petronas. Egypt’s Ministry of Petroleum and Mineral Resources confirmed in May that approximately $350 million has been allocated to the development.
The project will drill three new deepwater subsea gas wells in the Nile Delta offshore area. All three wells will tie back into existing subsea infrastructure. No new offshore production system is required. Project activities are scheduled to begin in the first quarter of 2027, with first gas targeted for 2028.
West Delta Deep Marine covers 17 gas fields located 90 to 120 kilometres offshore Egypt. Water depths across the concession range from 300 to 1,200 metres. The area is operated by Burullus Gas Company, a joint venture involving BG Delta, EGPC, and US partner Edison International.
A brownfield tie-back model that lowers cost and risk
Phase 12a follows the pattern established in Phases 10 and 11. Both earlier phases used subsea tie-backs to existing infrastructure. That approach shortened development timelines and improved capital efficiency.
By reusing installed facilities, the partners avoid the cost and complexity of a greenfield offshore build. The strategy limits the operational footprint and keeps unit development costs low. As one Cairo-based energy analyst observed: Phase 12a signals that brownfield offshore gas in Egypt is moving from episodic projects to a repeatable programme of tie-backs.
Ministry of Petroleum data show Phase 12a is expected to add approximately 150 million cubic feet of gas per day. Condensate output is projected at around 2,700 barrels per day. Both figures position the phase as a meaningful addition to Egypt’s domestic supply base.
What does Phase 12a mean for investors and regional supply?
The ministry has framed Phase 12a within a broader campaign to lift oil and gas output across key concessions. That campaign spans both Mediterranean and Western Desert acreage. Ongoing international bid rounds and new seismic programmes add further depth to Egypt’s upstream pipeline.
Across the Eastern Mediterranean, operators increasingly use existing platforms and pipelines to manage capital expenditure while keeping LNG export options open. Egypt’s position as a regional processing and export hub gives this approach particular strategic weight. West Delta Deep Marine volumes feed directly into processing and export infrastructure along the Nile Delta coast.
However, execution risk remains. Any delay to the 2027 start date would push first gas beyond 2028, coinciding with a period when European buyers are actively securing alternative supply. Institutional investors will therefore watch project milestones closely — and should track whether the ministry’s wider drilling programme extends the Egypt offshore gas tie-back model into additional West Delta phases beyond 12a.
Quick answers
Egypt’s Ministry of Petroleum confirmed an allocation of approximately $350 million for Phase 12a, which will drill three new deepwater subsea gas wells tied back to existing infrastructure.
Project activities are scheduled to begin in the first quarter of 2027, with first gas targeted for 2028, according to ministry statements.
Phase 12a is projected to add approximately 150 million cubic feet of gas per day and around 2,700 barrels per day of condensate, per Ministry of Petroleum data.
