Skip to main content
Shell

Egypt

395 Employees

  • Third-party revenues

    $749,567,331

  • Related-party revenues

    $118,642,029

  • Total revenues

    $868,209,360

  • Profit before tax

    $(112,334,382)

  • Tax paid

    $44,499,351

  • Tax accrued

    $45,237,599

  • Tangible assets

    $806,118,612

  • Stated capital

    $1,977,326

  • Accumulated earnings

    $93,392,932

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 2020, Shell was the contractor for 22 ring-fenced production-sharing contracts (PSCs), which cover 14 areas in the Western Desert and eight offshore. Offshore contracts comprise seven PSCs in the Mediterranean Sea (including one non-operated) and one PSC in the Red Sea.

In October 2019, we announced our intention to sell our onshore upstream assets in Egypt and in 2020 the divestment was still in progress.

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 2020 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 separately under Egyptian law. Consequently, the Egyptian tax base differs from the consolidated profit before tax reported under IFRS.

The tax paid figure relates to Shell’s downstream and onshore upstream activities. Corporate income tax was paid for onshore activities but not for offshore activities because of losses incurred in previous years in the offshore concessions. These were carried forward and offset against profits arising in 2020, resulting in no taxable base for offshore activities.

Our Payments to Governments Report for 2020 shows that Shell paid around $15 million in bonuses and fees.

Bonuses
Payments for bonuses usually paid upon signing an agreement or a contract, or when a commercial discovery is declared, or production has commenced or production has reached a milestone.
View complete glossary
Corporate income tax
This is a direct tax imposed on companies’ profits. It is sometimes levied at a national level but can also be levied on a state or local basis.
View complete glossary
Production-sharing contracts or concessions
A production-sharing contract (PSC) is a contractual arrangement between the holders of a resource, typically a country’s government, and a resource extraction company concerning how much oil or gas each party would receive. The company bears the mineral and financial risk of the initiative. It explores, develops and, if successful, manages production. Costs are recovered through the sales of oil or gas and what is left over is split depending on the terms of the contract.
View complete glossary
Profit before tax
These are profits after the deduction of operating costs but before the deduction of tax. This number forms the basis on which we apply local tax laws and then pay corporate income tax.
View complete glossary