Egypt
395 Employees
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Third-party revenues
$749,567,331
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Related-party revenues
$118,642,029
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Total revenues
$868,209,360
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Profit before tax
$(112,334,382)
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Tax paid
$44,499,351
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Tax accrued
$45,237,599
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Tangible assets
$806,118,612
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Stated capital
$1,977,326
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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.
