QatarEnergy to acquire 40% interest in Egyptian offshore exploration blocks from ExxonMobil

QatarEnergy has signed a farm-in agreement with ExxonMobil to acquire a 40% participating interest in two exploration blocks offshore Egypt. This transaction, pending customary government approvals, will see QatarEnergy take a significant stake in the Cairo and Masry Offshore Concession Agreements, while ExxonMobil, as the operator, will retain the remaining 60% working interest.

Expanding Presence in Egypt

His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, and the President and CEO of QatarEnergy, expressed satisfaction with this strategic entry into the Cairo and Masry offshore blocks. “I am pleased with our entry into the Cairo and Masry offshore exploration blocks as they expand QatarEnergy’s presence in the Arab Republic of Egypt and extend our ambitious exploration program in-country,” stated Al-Kaabi.

Collaborative Efforts

Minister Al-Kaabi highlighted the collaborative aspect of this venture, emphasizing the strong partnership with ExxonMobil and the support from Egyptian authorities. “We look forward to working with our valued long-term strategic partner ExxonMobil, as well as with the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian Ministry of Petroleum and Mineral Resources, in this promising and prospective region,” he added.

QatarEnergy to acquire a 40% interest in offshore exploration blocks Cairo and Masry from ExxonMobil to expand its presence in Egypt’s energy sector.

Details of the Exploration Blocks

The Cairo and Masry offshore exploration blocks, awarded to ExxonMobil in January 2023, cover an extensive area of approximately 11,400 square kilometers. These blocks are situated in water depths ranging from 2,000 to 3,000 meters, presenting significant exploration potential.

Geopolitical and Economic Significance

This agreement underscores QatarEnergy’s strategic intent to enhance its exploration footprint and resource base in key regions. The offshore blocks in Egypt are considered highly prospective, with the potential to contribute significantly to the energy portfolios of both QatarEnergy and ExxonMobil.

Regulatory and Compliance Information

The completion of this farm-in agreement is contingent upon customary approvals by the government of Egypt. QatarEnergy and ExxonMobil will work closely with Egyptian regulatory bodies to ensure compliance and facilitate a smooth transition of interests.

The acquisition of a 40% interest in the Cairo and Masry offshore exploration blocks marks a strategic expansion for QatarEnergy and reinforces its long-standing partnership with ExxonMobil. This move is expected to enhance exploration activities in a region with promising potential, benefiting both companies and contributing to the energy sector’s growth in Egypt.