ExxonMobil deal enables QatarEnergy to add more offshore acreage to its oil & gas portfolio
Qatar’s state-owned energy giant QatarEnergy has entered into a farm-in agreement for two exploration licenses offshore Newfoundland and Labrador in Canada with ExxonMobil Canada, a subsidiary of the U.S. oil major ExxonMobil. This deal allows the Qatari player to expand its offshore exploration portfolio in Atlantic Canada.
QatarEnergy revealed on Wednesday, 29 March 2023, that all necessary formalities for the transaction were completed with Canada- Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB). The licenses EL 1167 and EL 1162, which are located offshore Eastern Canada, lie in water depths ranging from 100 to 1,200 metres and cover an area of approximately 1,420 and 2,400 square kilometres, respectively.
Commenting on this, Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, the President and CEO of QatarEnergy, remarked: “We are pleased to sign this agreement with our strategic partner, ExxonMobil, to further grow our offshore Atlantic Canada portfolio as part of our international growth drive, and look forward to continue working within Canada’s transparent and stable regulatory environment.”
In accordance with the agreement, QatarEnergy holds a 28 per cent working interest in license EL 1167, where the Gale exploration well and associated activities are planned. On the other hand, ExxonMobil Canada, as the operator holds 50 per cent while Cenovus Energy holds 22 per cent. QatarEnergy also holds a 40 per cent working interest in license EL 1162, while ExxonMobil Canada acts as the operator with the remaining 60 per cent interest.
“I would like to take this opportunity to thank the Canada- Newfoundland and Labrador Offshore Petroleum Board, which has been very supportive of this process, and look forward to a successful exploration campaign with our partners,” added Al-Kaabi.
QatarEnergy has been working on expanding its global offshore oil and gas portfolio. To this end, the state-owned giant was part of a consortium, which was awarded an offshore exploration block in 2022 during the first cycle of Brazil’s open acreage under a production sharing regime bid held in Rio de Janeiro.
In addition, Qatar’s oil and gas player wrapped up the acquisition of a partial interest in two offshore blocks located in Lebanese waters in January 2023.
As a result, TotalEnergies, as the operator, and Eni, as its other partner, will each retain a 35 per cent interest in the blocks with QatarEnergy holding the remaining 30 per cent.