RWE Plans to Sell Egyptian Assets

RWE AG reportedly plans to divest its oil and gas concessions in Egypt as part of programme to shore up its balance sheet.

In 1999, RWE Dea took over assets from Deminex in Egypt, which have been operating since 1974.

In recent years the company made a number of major gas discoveries in Egypt and boosted its activities considerably with the acquisition of additional concessions. RWE Dea has a total of 13 onshore and offshore concessions in Egypt, across a concession area of about 13,300 square kilometers.

The German utility’s oil and gas exploration unit, RWE-DEA has been thought likely to go on the auction block sa the company has strugged with the edit by the German government to close the country’s 17 nuclear power stations by 2022, 14 years in advance of what was originally planned.

RWE has also been impacted by expensive, oil-indexed long-term gas supply contacts that it enered into with Gazprom,  The utility has been try to re-negotiate the cost agreements with the Rusiian gas export monopoly.