QatarEnergy has struck a deal with Shell to acquire working interests in two offshore exploration blocks in the Egyptian side of the Red Sea.
Under the terms of the agreements, which are subject to customary approvals by the government of Egypt, QatarEnergy will hold a 17% working interest in Red Sea Blocks 3 and 4.
Block 3 was awarded to Shell in late 2019 and covers an area of 3,097 sq km in water depths of 100 to 1,000 m. Block-4 was also awarded to Shell in late 2019 and covers an area of 3,084 sq km in water depths of 150 to 500 meters.
Upon the closing of the relevant agreements, the working interests in the two blocks will be as follows: Shell owns 43% of Block 3, BHP 30%, Tharwa Petroleum 10%, and QatarEnergy 17%. Shell has a 21% stake in Block 4, Mubadala has a 27% stake, BHP has a 25% stake, Tharwa Petroleum Company has a 10% stake, and QatarEnergy has a 17% stake.
QatarEnergy president and CEO Saad Sherida Al-Kaabi said the deal represents the company’s “entry into the Arab Republic of Egypt’s well-established upstream oil and gas sector and offers an opportunity for the consortium partners to explore this frontier acreage.”