QatarEnergy will enter Egypt’s upstream oil and gas sector through an agreement to acquire working interests in two offshore exploration blocks from Shell Exploration & Production (93) BV, a subsidiary of Royal Dutch Shell PLC.
Under the terms of the agreements, QatarEnergy will hold a 17% working interest in Red Sea Blocks 3 and 4. Shell will remain operator of both blocks.
Block 3 was awarded to Shell in late 2019 and covers an area of 3,097 sq km in water depths of 100-1,000 m. Block-4 was also awarded to Shell in late 2019 and covers an area of 3,084 sq km in water depths of 150-500 m.
Upon closing of the agreements, subject to customary approvals by the government of Egypt, working interests in the two blocks will be: Block 3: Shell (43%), BHP (30%), Tharwa Petroleum Co. (10%), and QatarEnergy (17%); Block 4: Shell (21%), Mubadala (27%), BHP (25%), Tharwa Petroleum Co. (10%), and QatarEnergy (17%).
