Shell, QatarEnergy Enter Definitive Agreement on Sale of Stake in North Cleopatra Block

SEATTLE (Oil Monster): State-owned Qatar Energy and British energy behemoth Shell plc. reached a final deal over the sale of a stake in an exploration block. The Egyptian government has not yet approved the deal.

The deal calls for Shell to sell a portion of its ownership of the North Cleopatra block in the Mediterranean Sea. With depths as deep as 2,600 meters, North Cleopatra covers an area of around 1,312 square miles. It is situated north and next to the North El-Dabaa block, where QatarEnergy has a 23% participation interest, in the boundary Herodotus basin offshore Egypt. 

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As a result of the deal, QatarEnergy will now hold a 27% interest. Shell will still own 36% of the dominant operating stake. Partners Chevron Corp. and Egypt's state-owned Tharwa Petroleum Co. will own the remaining 27% and 10% of the shares, respectively.

His Excellency commented on the significant development. The president of QatarEnergy, Mr. Saad Sherida Al-Kaabi, stated that the company is eager to collaborate with its partners and accomplish its ambitious exploration goals. The company is pleased to secure this additional exploration acreage, which further expands its upstream exploration activities in the Arab Republic of Egypt, he added.