Main Business Activities
- Upstream and Integrated Gas
- Trading and Supply
Shell has been present in Egypt since 1911 and we are active in the exploration and production of oil and gas. Shell expanded its offshore activities in Egypt when it acquired BG Group in 2016.
In 2018, Shell was the contractor for 17 ring-fenced production-sharing contracts (PSCs), which cover 13 areas in the Western Desert and four in the Mediterranean Sea. Shell was also awarded an additional five PSCs for exploration in the 2018 onshore and offshore bid round pending ratification by parliament.
Shell’s downstream activity in Egypt includes the blending and marketing of lubricants.
Country Financial Analysis
Egypt set the general corporate income tax rate at 22.5% for 2018 and the corporate income tax rate for the exploration and production of hydrocarbons at 40.55%. Each concession and legal entity is ring-fenced under Egyptian tax law and its taxable income is determined individually. Consequently, the local tax base deviates from the consolidated profit before tax as reported under IFRS for CbCR. In addition, some profits that were already taxed in previous years on the basis of local accounting and tax requirements have been recognised for IFRS and therefore CbCR purposes in 2018.
The corporate income tax figure in the table relates to Shell’s onshore upstream activities. No corporate income taxes on our production from Egyptian territorial waters or our downstream business were paid due to losses incurred in previous years. These were carried forward and offset against profits arising in 2018.