State-owned oil and gas company QatarEnergy, formerly Qatar Petroleum, has secured a deal with ExxonMobil Canada that will mark its entry into offshore exploration in the North American state.
The agreement will allow QatarEnergy to hold a 40 percent participating interest in ExxonMobil Canada’s exploration license in Hampden, a town in the Canadian province of Newfoundland and Labrador.
The site covered by the deal is located 450 kilometres east of the province’s capital city of St. John’s, in water depths of approximately 1,100 meters, a statement said.
“We are pleased to conclude this agreement which represents our first entry into offshore Canada, in an established producing basin with the leading producer in the area,” said Saad Sherida Al-Kaabi, Qatar Minister of State for Energy Affairs and president and CEO of QatarEnergy.
Al-Kaabi said the deal is an important addition to the company’s growing international exploration portfolio.
The transaction has already received all necessary approvals from the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB).
“I would like to take this opportunity to thank the C-NLOPB for supporting the transaction, and to thank ExxonMobil, our strategic partner, for their cooperation and efforts to conclude this agreement,” said Al-Kaabi.
Just this month, Qatar Petroleum changed its name to Qatar Energy. The company is one of the world’s top liquefied natural gas (LNG) suppliers.
(Writing by Cleofe Maceda; editing by Mily Chakrabarty)
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