QatarEnergy, the leading global LNG produce, has signed a farm-in agreement with ExxonMobil Corp. to acquire a 40 percent participating interest in two exploration blocks offshore Egypt.
Under the terms of the agreement, which is subject to customary approvals by the government of Egypt, QatarEnergy will acquire a 40 percent working interest in each of the “Cairo” and “Masry” Offshore Concession Agreements, while operator ExxonMobil will retain the remaining 60 percent working interest.
“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,” said Saad Sherida Al-Kaabi, the President and Chief Executive QatarEnergy.
Partners
“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,” explained Al-Kaabi.
“I would like to take this opportunity to thank the Egyptian authorities and our partners for their valuable support and cooperation,” he added.
Financial details of the latest QatarEnergy-ExxonMobil transaction were not disclosed.
The Cairo and Masry offshore exploration blocks were awarded to ExxonMobil in January 2023 and cover an area of around 11,400 square kilometres in water depths of 2,000 to 3,000 metres.
The QatarEnergy deal in Egypt was signed amid some concern about one of the main overseas LNG ventures involving QatarEnergy, the US Golden Pass export project and also involving ExxonMobil.
The Golden Pass LNG project has acknowledged ongoing discussions regarding the future role of the US Zachry group in the engineering, procurement and construction joint venture also including McDermott of the US and Chiyoda Corp, of Japan.
Golden Pass talks
“Golden Pass LNG acknowledges ongoing discussions regarding the role of Zachry within the venture,” said a statement.
“Work continues to diligently complete the project, but these discussions may impact site activity in the near term,” the statement added.
The Golden Pass liquefaction facilities are being constructed at the existing import terminal located on the Sabine-Neches Waterway in Texas.
The three liquefaction Trains will have a nameplate capacity of around 16 million tonnes per annum of LNG and ExxonMobil and QatarEnergy are marketing their own volumes.
The Train 1 mechanical completion is still on track for completion at the end of 2024 with first LNG in the first half of 2025.
