QatarEnergy Acquires 27% Stake in Egypt's North Cleopatra Offshore Block
QatarEnergy has entered into an agreement with Shell to acquire a 27% participating interest in the North Cleopatra block, an offshore exploration area located in Egypt. This strategic move enhances QatarEnergy's presence in the Eastern Mediterranean energy sector and aligns with its global expansion strategy.
Details of the Agreement
The deal, which is pending approval from the Egyptian government, will see Shell retain a 36% operating stake in the block. Other partners in the project include Chevron, holding a 27% interest, and Tharwa Petroleum Company, with a 10% stake.
His Excellency Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy, emphasized the importance of this acquisition. “We are pleased to secure this additional exploration acreage, which further expands our upstream exploration activities in the Arab Republic of Egypt,” he stated.
The North Cleopatra Block
Located in the frontier Herodotus Basin, the North Cleopatra block covers an area of over 3,400 square kilometers. The water depths in the block reach up to 2,600 meters, presenting both technical challenges and significant potential for oil and gas reserves.
The block is situated north of, and adjacent to, the North El-Dabaa block, where QatarEnergy already holds a 23% participating interest. This existing stake further solidifies QatarEnergy’s position in the region.
Egypt's Energy Sector and QatarEnergy's Investments
This acquisition is part of a broader trend of QatarEnergy expanding its portfolio in various oil and gas basins globally. Recent investments have been made in countries including Guyana, Lebanon, Namibia, and South Africa.
Egypt is aiming to become a significant player in the oil and gas industry, and partnerships with international energy companies like QatarEnergy are crucial for achieving this goal. The country is focusing on offshore resources to boost its production and address energy demands.
Statements and Future Outlook
Al-Kaabi expressed appreciation to the Egyptian Ministry of Petroleum and Mineral Resources and QatarEnergy's partners for their support and cooperation. “We look forward to working together and delivering our exploration objectives,” he added.
The collaboration between QatarEnergy and Shell extends beyond this project, with previous ventures including LNG supply agreements and other joint investments. This agreement reinforces their long-standing relationship and commitment to the energy sector.
