Qatar Petroleum buys into offshore block in South Africa
- Business & Finance
Qatar Petroleum entered into an agreement with the French oil giant Total to buy a 25% participating interest in the Exploration Block 11B/12B, offshore South Africa.
Subject to regulatory approvals by the South African government, Qatar Petroleum will have a 25% participating interest in the block, while Total (the operator) will have 45%, Canadian Natural Resources Limited (CNR) will hold 20%, and Main Street 1549 Proprietary Limited (Main Street) will have a 10% participating interest.
Commenting on this occasion, Saad Sherida Al-Kaabi, the President & CEO of Qatar Petroleum said: “This agreement is another step by Qatar Petroleum that embodies the vision of His Highness the Emir of the State of Qatar in expanding and reinforcing Qatar’s leading position in the field of energy across the globe. We are pleased to sign this agreement with our long-time partner Total, and to participate in exploration activities in this frontier block offshore South Africa.”
“We are hopeful that the exploration efforts, including the drilling of an exploration well later this year, will be successful, and we look forward to collaborating with our partners Total, CNR, Main Street in this project. I would like to take this opportunity to thank the South African authorities and our exploration partners for their support,” Al-Kaabi concluded.
Block 11B/12B is located in what is considered to be a frontier area in the Outeniqua Basin, approximately 175 kilometers off the southern coast of South Africa. It covers an area of approximately 19,000 square kilometers with water depths ranging from 200 to 1,800 meters.
Five blocks in Mexico
News of the acquisition of acreage in South Africa comes only days after QP announced it had acquired five offshore blocks in Mexico, as part of Mexico’s recent deepwater bid round.
Qatar Petroleum won the exploration rights for blocks 3, 4, 6, and 7 in the Perdido basin as part of a consortium comprising Shell (operator with a 60% interest) and Qatar Petroleum (with a 40% interest). Furthermore, Qatar Petroleum won the exploration rights for block 24 in the Campeche basin as part of a consortium comprising Eni (operator with a 65% interest) and Qatar Petroleum (with a 35% interest).
Al-Kaabi last week said: “Winning these offshore exploration blocks in Mexico, which contain some of the most promising hydrocarbon prospects in the world, is an important achievement for Qatar Petroleum. It represents another step in implementing our strategy to expand our international footprint, and to pursue Latin America as an important core area for Qatar Petroleum.”
“I would like to take this opportunity to thank the Mexican authorities for the transparent and efficient process, and our partners Shell and ENI for their excellent collaboration on this opportunity,” Al-Kaabi concluded.
The exploration blocks were offered as part of the Mexico Deep Water Round 2, Phase 4 bid round, which covered 29 blocks in the Perdido, Campeche and Mexican Ridges areas in the Gulf of Mexico.
The relevant legal agreements, including the concession agreements, are expected to be signed between the Mexican authorities and the various winning entities by May of this year.
Offshore Energy Today Staff