Shell Egypthas confirmed that a last-minute bid by the UK’s BG Grouphas headed off the sale by the Royal Dutch/Shell Groupof a 40 per cent stake in the Rosetta concession to Kuwait Foreign Petroleum Exploration Company (Kufpec).

An agreement with Kufpec was originally announced in early June, but the transaction was subject to government approval as well as the pre-emption and approval rights of the other partners in the concession – including BG, which is the operator. The latest transaction is also subject to government approval (MEED 11:6:04).

The deal, worth about $235 million, will bring BG’s stake in Rosetta to 80 per cent. Italy’s EdisonInternationalholds the remaining 20 per cent. Shell continues to hold interests in three other local concessions – two in the North East Mediterranean Deepwater (Nemed), and one in North East Abu Gharadig (Neag). Rosetta produces 275 million cubic feet a day of gas.