RWE Shelves Plan to Sell Stake in Egypt Oil, Gas Blocks

German utility RWE has shelved its plan to sell gas and oil fields in Egypt due to a lack of interest from potential buyers amid the on-going instability in the region.

Dow Jones has said that this development may hamper the company’s plans to reduce its debts.

Political turmoil in Egypt and the wider region resulted in extremely muted interest for the assets, prompting RWE to abandon the sale for now, two people familiar with the matter told Dow Jones Newswires.

Austria's oil and gas company, OMV, was the last potential suitor to look at the assets, but walked away in light of the political situation, the sources told the news agency.

RWE holds 40% in the North Alexandria field and 20% in West Mediterranean Deep Water field in Egypt. The rest is held by BP. The German film was looking at realising about $1 billion for its stakes in the two exploration licenses.