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Bloomberg: Centurion, Shell End Egyptian Gas Development Accord (Update4)

By Jim Polson

Dec. 29 (Bloomberg) — Centurion Energy International Inc., the Canadian oil and gas producer that’s being acquired by a United Arab Emirates-based energy company, announced the termination of plans by Royal Dutch Shell Plc to help it explore for natural gas in Egypt’s Nile Delta.

The two companies mutually agreed to end an accord under which Shell would have paid $15 million for a 50 percent stake in two gas blocks, West Manzala and West Qantara, Calgary-based Centurion Energy said in a statement today.

Dana Gas PJSC, which agreed on Nov. 12 to buy Centurion Energy for C$1.15 billion, ($991 million), has its own plans to develop a gas business in Egypt that include West Manzala and West Qantara, Centurion Energy said. The acquisition is expected to close after a Jan. 8 vote by shareholders, the company said today.

Dana Gas on Oct. 1 said it agreed to take a 66 percent stake in Danagaz (Bahrain), which is planning to build a plant in Egypt’s Gulf of Suez to process natural gas produced by state-run Egyptian General Petroleum Corp.

Shares of Centurion Energy rose 3 cents to C$11.93 on the Toronto Stock Exchange. Shell fell 7 pence to 1,785 pence in London, and Dana Gas rose 3.3 percent to 1.57 dirhams in Abu Dhabi.

To contact the reporter on this story: Jim Polson in New York at [email protected] .

Last Updated: December 29, 2006 16:12 EST

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