QatarEnergy acquires two offshore exploration blocks in Egypt

QatarEnergy acquires two offshore exploration blocks in the Egyptian side of the Red Sea from Shell, under which QatarEnergy will hold 17 percent working interest in Red Sea Blocks 3 and 4.

Qatar investments in the energy market in Qatar has been ongoing even during political tensions between both countries. However, this announcement represents the first time the company invests in Egypt's upstream sector.

“We are pleased with this important development, as it represents QatarEnergy’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,” said Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy.

Block 3 was awarded to Shell in late 2019 and covers an area of 3,097 square kilometers in water depths of 100 to 1,000 meters. Meanwhile, Block 4 was also awarded to Shell in late 2019 and covers an area of 3,084 square kilometers in water depths of 150 to 500 meters. 

Shell will remain the operator of both Block 3 and 4 with stakes 43 percent and 21 percent respectively. 

The agreement is subject to customary approvals from the Egyptian government.