ExxonMobil brings QatarEnergy on board as its new partner in two exploration blocks

Qatar’s state-owned energy giant QatarEnergy has sealed a deal with ExxonMobil, a U.S.-headquartered energy heavyweight, to enter two exploration blocks off the coast of Egypt.

The farm-in agreement with ExxonMobil enables QatarEnergy to acquire a 40% participating interest in the Cairo and Masry concession agreements offshore Egypt. Terms of the deal, subject to customary approvals by the government of Egypt, will see the U.S. oil and gas giant retain the remaining 60% operated working interest in the exploration blocks.

Commenting on the signing of the agreement, Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, President and CEO of QatarEnergy, remarked: “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.”

Covering an area of approximately 11,400 square kilometers in water depths of 2,000 to 3,000 meters, these two offshore exploration blocks were awarded to ExxonMobil in January 2023.

Al-Kaabi added: “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.”

Egypt is not the only oil and gas playground where QatarEnergy is fortifying its hydrocarbon arsenal. The company is also working to boost its gas reserves by adding another expansion project to its arsenal at the North Field, thus, the North Field East (NFE) and the North Field South (NFS) undertakings will be joined by the North Field West (NFW) project, which is anticipated to scale up the country’s LNG production capacity by almost 85% from current production levels by 2030.

The Persian Gulf state’s energy giant is working to increase its oil production at Qatar’s largest offshore oil field by about 100,000 barrels per day. To this end, the firm picked four players for engineering, procurement, construction, and installation (EPCI) assignments, including McDermott, HD Hyundai Heavy Industries, Larsen & Toubro, and China Offshore Oil Engineering (COOEC).

QatarEnergy is pursuing its LNG fleet expansion program with vigor through the execution of shipbuilding contracts and time charter agreements for 104 conventional LNG vessels and 18 QC-Max class LNG ships, amounting to a total of 122 ultra-modern vessels, with the first new ship expected to be delivered by the end of the third quarter of 2024.