Shell plc (SHEL Quick QuoteSHEL - Free Report) , a British multinational oil and gas company, is on the verge of a major strategic breakthrough in the Eastern Mediterranean, as it is close to getting the development rights for Egypt’s offshore Rahmat gas field, a site regarded as a major untapped resource in the region, according to Zawya News Agency. This significant move would not only strengthen Shell’s presence in the region but also reflect its renewed commitment to high-potential deepwater assets as global energy demand continues to evolve.

Strategic Importance of the Rahmat Field

Situated in the northeastern Mediterranean, the Rahmat field is a deepwater resource estimated to contain approximately 1.3 trillion cubic feet (“TCF”) of natural gas alongside 80 million barrels (MMbbl) of condensate. This assessment comes from geological information provided by the Pharaonic Petroleum Company, a partnership between the London-based oil and gas company BP plc (BP Quick QuoteBP - Free Report) and the Egyptian government. These substantial reserves rank Rahmat among the region’s most valuable undeveloped assets, attracting significant interest from international energy companies keen to leverage the increasing importance of Mediterranean gas discoveries.

This opportunity re-emerged after BP relinquished its concession to the field two years ago due to challenges in meeting development deadlines. The setback created an opening for other international players to step in and Shell is reportedly leading the race, having submitted the highest offer during a recent international bidding round. The competitive bidding, which wrapped up in early July 2025, featured 13 offshore blocks, with the highly valued Rahmat field included.

Egypt’s Renewed Energy Strategy and Offshore Potential

In March 2025, Egypt’s Ministry of Petroleum and Mineral Resources launched a highly anticipated tender process, offering seven undeveloped Mediterranean fields, including Rahmat, along with six exploration concessions located in the Gulf of Suez and the Western Desert. The move signaled a strategic pivot by Egypt to unlock value from its offshore and onshore reserves, drawing fresh investments from both local and international energy companies.

This renewed licensing round aligns with Egypt’s broader goal to become a regional energy hub, especially in liquefied natural gas (“LNG”) exports. With the Rahmat field’s development, Shell would not only access significant hydrocarbon volumes but also potentially integrate production into Egypt’s existing LNG infrastructure, further enhancing export potential to Europe and beyond.

Shell’s Expanding Footprint in Egypt

If finalized, this deal will represent a notable expansion of Shell’s footprint in Egypt, reinforcing its long-standing relationship with the North African nation. For decades, Shell has operated within Egypt’s energy sector, focusing on onshore oil, offshore deepwater gas fields and LNG export activities. However, acquiring the Rahmat concession would mark a significant deepening of Shell’s strategic interest in the Eastern Mediterranean basin, a region that has rapidly become one of the most competitive frontiers for gas exploration.

The proximity of the Rahmat field to existing infrastructure, including other major discoveries like Zohr, enhances the field’s commercial viability. By leveraging proven technology, operational expertise and strategic partnerships, Shell is well-positioned to expedite development timelines and deliver first gas faster than industry norms.

Competitive Landscape and Outlook

Shell’s reported victory in the Rahmat bidding round reflects a broader trend of international oil majors returning to Egypt, drawn by favorable investment terms, robust geological data and increased market demand for cleaner energy sources like natural gas. In response to the energy transition, Shell and similar companies are focusing on natural gas as a key bridging resource, with the Rahmat asset exemplifying this approach through its significant reserves, regional demand compatibility and export versatility.

The outcome of this deal could set the stage for further investments in Egypt, both by Shell and competitors seeking to secure a stake in the next phase of Mediterranean gas development. It also highlights Egypt’s ability to attract top-tier international players, even amid global economic and geopolitical uncertainties.

Conclusion

The potential prospective transfer of the Rahmat field development rights to Shell represents a significant turning point for both the corporation and the energy landscape in Egypt. As Shell advances negotiations, the industry is watching closely. If confirmed, this deal will be a defining milestone in Shell’s regional strategy and a clear indication of Egypt’s ascent as a critical node in the global energy supply chain. With vast reserves, supportive policies and strong infrastructure, the Rahmat field may soon become a cornerstone in Shell’s global gas portfolio and a powerful symbol of Egypt’s energy renaissance.

SHEL's Zacks Rank & Key Picks

Currently, SHEL and BP have a Zacks Rank #3 (Hold) each.

Investors interested in the energy sector might look at some better-ranked stocks like Repsol (REPYY Quick QuoteREPYY - Free Report) and Precision Drilling (PDS Quick QuotePDS - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Repsol is a global energy company known for its integrated operations spanning exploration, production, refining and marketing of oil and gas. It actively pursues innovation and sustainability initiatives to transition toward cleaner energy solutions while maintaining a strong presence in key international markets. Repsol is valued at $18.92 billion. 

Precision Drilling is a leading provider of drilling and well-servicing services to the oil and gas industry, known for its advanced technology and operational expertise. The company focuses on delivering efficient and safe drilling solutions across North America. Precision Drilling is valued at $750.86 million.