QatarEnergy takes 27% stake in Egypt’s offshore North Cleopatra exploration block

In a deal that benefits the MENA region tremendously, reports have emerged that QatarEnergy has purchased a 27% stake in Egypt’s offshore North Cleopatra exploration block. The deal allows QatarEnergy to strengthen its presence in the region while maintaining operational control of the site. Egypt has vast amounts of natural resources that are yet to be fully explored, and QatarEnergy is the perfect entity to explore the block in Egypt’s offshore North Cleopatra site. The deal also enables more inclusive partnerships with relevant stakeholders.

QatarEnergy purchases a 27% stake in the block from a giant of the energy sector

The North Cleopatra site is crucial to Egypt’s energy ambitions and delivers vital employment to the region’s populace. The nations that make up the Middle East and North Africa alliance, or MENA for short, are developing innovative projects that foster international cooperation while maintaining a majority stake in the energy projects in the region.

Egypt has vast amounts of natural resources that are just waiting to be brought to the surface. QatarEnergy is a state-owned energy utility that aims to strengthen the nation’s footprint in the energy sector. The details of the deal state that QatarEnergy will purchase a 27% stake in Egypt’s offshore North Cleopatra exploration block from British energy giant Shell.

Shell will still hold a 36% participating interest and operational rights to the block, but has allowed QatarEnergy to join the list of companies that hold a stake in the project, which includes Chevron, who hold a 27% interest, and Tharwa Petroleum Company with a 10% stake. The North Cleopatra block is adjacent to the North El-Dabaa block, in which QatarEnergy holds a 23% interest.

Qatar’s government has praised the deal that enables it to strengthen its presence in Egypt

QatarEnergy is a vast company that has interests in several energy-rich nations across the world. At the moment, it has operations in Guyana, Lebanon, Namibia, and South Africa.

However, Egypt’s offshore North Cleopatra block represents the biggest and most lucrative project for the company. Qatar’s government has praised the deal in a recent statement from its Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, who also serves as QatarEnergy’s CEO and President.

“We are pleased to secure this additional exploration acreage, which further expands our upstream exploration activities in the Arab Republic of Egypt. We would like to take this opportunity to thank the Egyptian Ministry of Petroleum and Mineral Resources, and our partners in the block for their valued support and cooperation. We look forward to working together and delivering our exploration objectives.” – Qatar’s Minister of State for Energy Affairs and QatarEnergy president and CEO

In May of this year, Qatar’s state-owned energy company entered into an agreement with a subsidiary of Shell, Shell International Eastern Trading Company, to deliver up to 285 million barrels of condensate. The deal follows a similar agreement revealed, which notes that KKR has invested in ADNOC gas pipelines, further strengthening the upstream sector in the region.

The deal could evolve the scale of projects being undertaken in the upstream sector in the region

As the world’s demand for significant power generation rises, the energy industry needs to develop more projects like the North Cleopatra exploration block that would deliver vast amounts of crucial resources to the international energy sector. Certain nations around the world are rolling back oversupply in the coal sector, like China, which recently halted operations at several coal mines in the Inner Mongolia region. Egypt and Qatar are advancing with their plans to advance the potential of the offshore North Cleopatra exploration block. The energy sector is working hard to balance the need for expansive projects with the need to integrate the renewable energy sector.