The sanctioned development will add three deepwater gas wells tied into existing West Delta Deep Marine subsea infrastructure, with first production targeted for 2028.
Published by Allstream Insiders
Allstream Insiders Summary
Shell subsidiary BG Delta Limited and its project partners have reached a final investment decision on Phase 12a in Egypt’s West Delta Deep Marine concession. The development will include three deepwater gas wells connected to the concession’s existing subsea infrastructure in the Mediterranean Sea.
Shell said first production from Phase 12a is expected in 2028. The announced scope includes drilling and completing the wells, installing facilities, and completing the hook-up and commissioning work required to connect them to the existing system.
Phase 12a is a sanctioned development, but Shell did not disclose a project capital value, production-volume forecast, drilling-rig award, subsea contractor or construction contract in the August 24 announcement.
What is included in WDDM Phase 12a?
Phase 12a will develop three deepwater gas wells through tiebacks to infrastructure already operating in the West Delta Deep Marine concession. Shell said the development concept follows the execution approach used for WDDM Phases 10 and 11.
The company identified the Phase 12a scope as:
- Drilling and completion of three deepwater gas wells
- Installation of the associated facilities
- Hook-up to WDDM’s existing subsea infrastructure
- Commissioning of the new wells and connected facilities
Shell said using established subsea and operating infrastructure is intended to shorten the project cycle, improve capital efficiency and limit the additional operational footprint. These are the company’s stated development objectives rather than independently measured project outcomes.
| Project detail | Company-reported information |
|---|---|
| Development | West Delta Deep Marine Phase 12a |
| Location | Egypt’s Nile Delta, offshore in the Mediterranean Sea |
| Development status | Final investment decision reached |
| Well scope | Three deepwater gas wells |
| Development concept | Subsea tiebacks to existing WDDM infrastructure |
| First-production target | 2028 |
| Capital value | Not disclosed in the announcement |
| Production forecast | Not disclosed in the announcement |
Where is the West Delta Deep Marine concession?
The WDDM concession is located in the Nile Delta approximately 90 to 120 kilometers offshore Egypt. Shell reported that the concession spans water depths ranging from approximately 300 to 1,200 meters.
BG Delta Limited, a Shell subsidiary, holds a 50% interest in the concession. Petronas International Corporation Ltd. Egypt holds the remaining 50% interest.
The WDDM facilities are operated by Burullus Gas Company, a joint venture owned by the Egyptian General Petroleum Corporation with 50%, BG Delta Limited with 25%, and Petronas International Corporation Ltd. Egypt with 25%. Shell’s announcement also identified the Egyptian Natural Gas Holding Company among the project partners, but it did not list EGAS as an equity owner of either the concession or the Burullus operating company.
Phase 12a follows six wells delivered through Phases 10 and 11
WDDM first entered production in 2003, and its two most recent development phases added six wells during 2024 and 2025. Shell said Phase 12a will replicate the concept and execution approach used for Phases 10 and 11 and will carry a comparable investment envelope.
The announcement did not provide the investment amount for Phase 12a or the earlier phases. It also did not assign a production rate to the three new wells. Allstream therefore does not attach a capital value or incremental gas-volume estimate to the development.
What could Phase 12a mean for the offshore supply chain?
The final investment decision establishes a confirmed three-well development scope that includes drilling, completions, facilities installation, hook-up and commissioning. Based on that disclosed configuration—not on announced procurement packages—the execution program could involve work across:
- Deepwater drilling and well-completion services
- Subsea wellheads, trees and associated production equipment
- Flowlines, umbilicals, controls and subsea connection equipment
- Offshore construction, installation and marine-support services
- Testing, hook-up, commissioning and integrity-assurance work
- Logistics, inspection and technical services supporting offshore execution
These categories are Allstream’s assessment of work commonly associated with the project scope Shell disclosed. They are not confirmed tenders, bid packages, contractor awards or supplier opportunities. Actual contracting requirements will depend on Shell, the WDDM partners and Burullus Gas Company’s execution and procurement plans.
Why does the Phase 12a final investment decision matter?
Phase 12a advances another subsea tieback program within one of Egypt’s established offshore gas-producing areas. The project is designed to use existing infrastructure rather than require a newly announced standalone production facility.
Shell positioned the investment as part of its effort to develop remaining WDDM resources under suitable technical and commercial conditions and to support Egypt’s domestic gas supply. The next material project indicators will be contract awards, drilling activity, installation milestones and confirmation of first production against the company’s 2028 target.
