Africa

Egypt

We have a 50% interest in the Badr Petroleum Company (BAPETCO), a self-operated joint venture between Shell and the Egyptian General Petroleum Corporation (EGPC). BAPETCO onshore operations are located in the Western Desert where we have an interest in nine oil and gas producing development leases, as well as three exploration concessions (North East Obaiyed, North Matrouh and North East Alam El Shawish).

As a result of the BG acquisition, we have interests in two gas-producing areas offshore the Nile Delta. We have a 40% interest in the Rashid Petroleum Company (RASHPETCO), a self-operated joint venture between Shell, EGPC and Edison, which operates the Rosetta concession (Shell interest 80%). In 2016, the contractor parties to the Rosetta concession (Shell and Edison) handed over the right of use for the Rosetta onshore gas processing plant to BP and RWE.

We also have a 25% interest in the Burullus Gas Company (Burullus), a self-operated joint venture between Shell, EGPC and PETRONAS. Burullus operates the West Delta Deep Marine concession (WDDM, Shell interest 50%).

In 2016, gas was supplied from the WDDM concession to the Egyptian LNG (ELNG) plant.

We also have a 60% interest in the development rights over the Harmattan Deep discovery and in the Notus discovery offshore the Nile Delta.

Gabon

We have an interest in eight onshore mining concessions (Shell interests ranging from 40% to 100%), of which five are Shell operated and three are Total operated. The onshore concessions are governed through seven production sharing contracts and one tax agreement. An important part of the Gabon production comes from the Toucan (Shell interest 94.25%), Rabi (Shell interest 52.5%) and Koula fields (Shell interest 40%). We also have an interest in Shell-operated Gabon deep-water exploration licences (Shell interest 75%).

In March 2017, we reached agreement to sell all our onshore interests in Gabon. The agreement is subject to certain conditions and approvals. Closing is expected in mid-2017.

Nigeria

Our share of production, onshore and offshore, in Nigeria was 258 thousand boe/d in 2016, compared with 278 thousand boe/d in 2015. Security issues, sabotage and crude oil theft in the Niger Delta continued to be significant challenges in 2016.

Onshore

The Shell Petroleum Development Company of Nigeria Limited (SPDC) is the operator of a joint arrangement (Shell interest 30%) that has 17 Niger Delta onshore oil mining leases (OML), which expire in 2019. These include OML 25, which is held for sale subject to the resolution of pending litigation. Of the Nigeria onshore proved reserves, 164 million boe are expected to be produced before the expiry of the current licences, and 377 million boe beyond. To provide funding, modified carry agreements are in place for certain key projects and are being reimbursed.

Although the level of crude oil theft decreased in 2016 compared with 2015, a substantial increase in the level of sabotage was reported as result of the Forcados export line attacks, which led to a significantly higher overall production loss than in 2015.

SPDC supplies gas to Nigeria LNG Ltd (see “Integrated Gas”) mainly through its Gbaran-Ubie and Soku projects.

Offshore

Our main offshore deep-water activities are carried out by Shell Nigeria Exploration and Production Company Limited (SNEPCO, Shell interest 100%), which has interests in four deep-water blocks under PSC terms. SNEPCO operates OMLs 118 (including the Bonga field, Shell interest 55%) and 135 (Bolia and Doro, Shell interest 55%) and has a 43.75% interest in OML 133 (Erha), where we are not the operator, and a 50% interest in OPL 245 (Zabazaba, Etan), where we are also not the operator.

The authorities in various countries are investigating our investment in Nigerian oil block OPL 245 and the 2011 settlement of litigation pertaining to that block. On January 27, 2017, the Nigeria Federal High Court issued an Interim Order of Attachment for oil block OPL 245, pending the conclusion of the investigation. Shell has applied to discharge this order on constitutional and procedural grounds. On February 14, 2017, we received notice of the request of indictment from the Italian prosecution office in Milan.

SNEPCO also has an approximate 43% interest in the Bonga South West / Aparo development via its 55% interest in OML 118. Following the decision to delay the Bonga South West / Aparo project, a reframing exercise is under way to make this project economically viable in the current business environment. FID is not expected before 2018.

SPDC also has three shallow-water licences (OMLs 74, 77, and 79) and a 40% interest in the non-Shell-operated Sunlink joint venture that has one shallow-water licence (OML 144); all four shallow-water OMLs expire in 2034.

Rest of Africa

We also have interests in Algeria, Kenya, Namibia, South Africa, Tanzania and Tunisia.