Abu Dhabi’s state-owned Mubadala Petroleum has signed with Egypt a concession agreement to explore oil and gas in the Red Sea.
The deal, signed with Egyptian Minister of Petroleum and Mineral Resources Tariq Al-Mulla, covers an estimated 3,084 square kilometres in the Red Sea Block 4 (Block 4), owned by the South Valley Egyptian Petroleum Holding Company (Ganope).
Under the agreement, Mubadala Petroleum will hold 27 percent participating interest in Block 4. The area is operated by Shell with a 63 percent participating interest and Tharwa, with a 10 percent participating interest.
Mubadala and Shell were among the global companies who won in Egypt’s first ever international bid for offshore concessions in the Red Sea in 2019.
Block 4 is located in the Northern Sea in an area adjacent to the Gulf of Suez basin. The concession is said to have a potential to unlock substantial new prospects.
“The addition of Red Sea Block 4 marks a further extension of our Egypt portfolio with a new high-impact growth opportunity alongside a world-class partner in Shell,” said Bakheet Al Katheeri, Mubadala Petroleum’s chief executive officer (CEO).
“This new exploration block will support our strategy of finding and, if successful, developing hydrocarbons for Egypt’s expanding market and delivering organic growth opportunities to add to our existing business in the country,” said Al Katheeri.
Egypt had offered 10 blocks in its Red Sea international bid. The area spans more than 50 percent of the country’s Red Sea maritime shelf which borders with Saudi Arabia.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2021