PROFIT BEFORE TAX
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 2019, Shell was the contractor for 21 ring-fenced production-sharing contracts (PSC), which cover 15 areas in the Western Desert and six in the Mediterranean Sea. This includes the award of five PSCs for exploration in the 2018 onshore and offshore bid round. These were ratified by parliament in 2019.
In October 2019, we announced our intention to sell our onshore upstream assets in the country.
Shell’s downstream activities in Egypt include the blending and marketing of lubricants.
Country Financial Analysis
Egypt’s statutory corporate income tax rate was 22.5% in 2019 and the corporate income tax rate for the exploration and production of hydrocarbons was 40.55%. The taxable income of each concession and legal entity is determined under Egyptian law.
Tax paid relates to Shell’s downstream and onshore upstream activities. No corporate income taxes were paid on production from offshore activities because of losses incurred in previous years. These were carried forward and offset against profits arising in 2019.