QatarEnergy enters Egyptian offshore

QatarEnergy will join Shell’s development of two frontier exploration blocks in the Red Sea offshore Egypt, marking the state-owned company’s entry into the Egyptian market.

Once the deal secures government approval from Cairo, QatarEnergy will take 17% in blocks 3 and 4, Shell Egypt said on Monday.

“Bringing such reliable partners into the project will enable us to leverage our joint expertise as we progress the opportunity,” Khaled Kacem, Shell’s vice-president and country chair for Egypt, said.

“It is also worth highlighting that we were able to attract new market entrants thanks to the favourable investment climate in Egypt.”

Following the deal, the breakdown in stake ownership in Block 3 will be: Shell with 43% (as operator), local player Tharwa with 10%, Australia’s BHP with 30% and QatarEnergy with 17%.

Block 4 will be held by Shell with 21% (as operator), the UAE’s Mubadala Petroleum with 27%, Tharwa with 10%, BHP with 25% and QatarEnergy with 17%.