Shell, PetroChina sign Qatari E&P agreement

Royal Dutch Shell PLC and PetroChina Co. Ltd. have signed an exploration and production-sharing agreement (EPSA) covering pre-Khuff gas targets on Block D on and off Qatar.

By OGJ editors
HOUSTON, May 18
-- Royal Dutch Shell PLC and PetroChina Co. Ltd. have signed an exploration and production-sharing agreement (EPSA) covering pre-Khuff gas targets on Block D on and off Qatar.

The block covers 8,089 sq km near Ras Laffan.

The 30-year agreement has a 5-year initial exploration period, during which Shell and PetroChina will conduct exploration technical studies; shoot 2D and 3D seismic surveys; process, reprocess, and interpret seismic data; and drill an unspecified number of exploratory wells to strata older than Permian Khuff.

Part of supergiant North gas field, which produces from the Khuff formation, overlies Block D.

Shell is operator with a 75% equity share. Petrochina holds the remainder. Qatar Petroleum (QP) will supervise production that might result from the program and buy the gas.

QP signed a pre-Khuff EPSA covering 5,649-sq-km offshore Block BC with China National Offshore Oil Corp. last year.

“QP is also preparing for additional pre-Khuff reservoir exploration tenders in the near future,” said Qatari Deputy Prime Minister and Minister of Energy and Industry Abdulla bin Hamad Al-Attiyah.

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