Societe Generale, London Branch led a syndicate of lenders on a reserve-based lending facility of US$325 million to subsidiaries of Cheiron Petroleum Corporation and Cairn Energy PLC for the acquisition of upstream oil and gas assets located in the Western Desert in Egypt from Shell Egypt N.V. and Shell Austria GmbH for a base consideration of US$646 million and an additional contingent consideration of up to a maximum of US$280 million.

The portfolio of target assets includes over 20 producing fields and associated infrastructure and 3 exploration concessions. Field activities will continue to be managed by Bapetco, a joint venture company owned by between Cheiron, Cairn and the Egyptian General Petroleum Corporation. 

The syndicate of banks was led by Societe Generale, London Branch, as initial mandated lead arranger and co-ordinating bank. The loan proceeds will be primarily applied to the financing of acquisition costs for the Shell assets.