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Shell sells 17% stakes in two

Red Sea blocks to Qatar Energy

EGYPT SHELL Exploration & Production, a subsid- president and CEO of QatarEnergy, said: “We
iary of Royal Dutch Shell (UK/Netherlands), are pleased with this important development, as
has signed farm-out agreements (FOAs) with it represents QatarEnergy’s entry into the Arab
QatarEnergy disposing of 17% stakes in Blocks Republic of Egypt’s well-established upstream
3 and Block 4 in the Egyptian section of the Red oil and gas sector and offers an opportunity for
Sea for an undisclosed sum. Both blocks are the consortium partners to explore this frontier
operated by Shell. acreage.” ™
The FOAs, which are subject to government
and regulatory approvals, without prejudice to
pre-emption rights, enable Shell Exploration &
Production to add new parties to the project by
selling equity stake in the venture.
Earlier, Shell Exploration & Production sold
sizable stakes in Blocks 3 and 4 to BHP Petro-
leum (Egypt) Ltd of Australia. The partners’
equity in Block 3 post-FOA completion will be
divided between Shell (43%), Egypt’s Tharwa
Petroleum Co. (10%), BHP (30%) and QatarEn-
ergy (17%). The ownership of Block 4 post-FOA
completion would be distributed between Shell
(21%), Mubadala Petroleum (27%), Tharwa
(10%), BHP (25%) and QatarEnergy (17%).
“Bringing such reliable partners into the pro-
ject will enable us to leverage our joint expertise
as we progress the opportunity. It is also worth
highlighting that we were able to attract new
market entrants thanks to the favourable invest-
ment climate in Egypt,” Khaled Kacem, Shell’s
vice-president and country chair for Egypt, said
in a press release.
For his part, Saad Sherida Al-Kaabi, Qatar’s
minister of state for energy affairs and the Blocks 3 and 4 are in Egypt’s section of the Red Sea (Image: QatarEnergy)

UTM Offshore signs $5bn agreement with

Afreximbank for Nigeria’s first FLNG project

NIGERIA NIGERIA’S marine and services group UTM UTM Offshore’s Managing Director and
Offshore is moving towards a deal with Afrex- CEO Julius Rone said the FLNG would be the
imbank to secure up to $5bn worth of credits to first project of its type ever to be developed by an
develop the country’s first floating LNG produc- African company on the continent. “It will also
tion facility, the trade publication LNG Prime significantly contribute to the Nigerian govern-
reports. ment’s agenda of reducing the flaring of associ-
Under the memorandum of understanding ated gas across our industry,” he was quoted as
(MoU) signed on December 7 in Abuja, Afrex- saying by LNG Prime.
imbank will provide $2bn for the FLNG project’s UTM Offshore earlier this year received a
first phase and $3bn for the second, as well as licence from Nigeria’s Department of Petroleum
offering other financial and insurance support Resources to establish the country’s first FLNG
services. vessel.

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