QatarEnergy Acquires 2 Offshore Exploration Blocks Of ExxonMobil In Egypt

May 23, 2024


QatarEnergy signed a farm-in agreement with ExxonMobil to acquire a 40% participating interest in the “Cairo” and “Masry” offshore exploration concession agreements, a statement showed on May 13.

Offshore exploration concession

The deal, which is subject to customary approvals by the Egyptian government, will see ExxonMobil, the operator of the two concessions, retain the remaining 60% working interest.

“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,” said Saad Sherida Al-Kaabi, the Qatari Minister of State for Energy Affairs, the President and CEO of QatarEnergy in the statement.

The Cairo and Masry offshore exploration blocks, which were awarded to ExxonMobil in January 2023, cover an area of approximately 11,400 square kilometers in water depths ranging from 2,000 to 3,000 meters.

This acquisition marks the second such deal between QatarEnergy and ExxonMobil in Egypt. In March 2022, the two companies signed a similar agreement for QatarEnergy to acquire a 40% stake in ExxonMobil’s North Marakia offshore block, located around five miles offshore Egypt’s northern coast in the Herodotus basin.

The latest move by QatarEnergy underscores the company’s strategic focus on expanding its presence in the Egyptian energy landscape and strengthening its partnership with global industry leaders like ExxonMobil to explore and develop the country’s offshore hydrocarbon resources.

Egypt is seeking increased support from Gulf countries as it grapples with several economic challenges including high inflation debt, and dollar scarcity.

Big investments

In November 2023, the head of the Commercial Representation Authority, an affiliate of the Egyptian Ministry of Trade and Industry stated that Qatar is set to invest about $1.5 billion in the Egyptian industrial sector in 2024 as a part of the country’s strategy to invest a total of $ 5 billion in the Egyptian economy.

Recently, the UAE has signed Ras El-Hekma coastal zone development agreement worth $35 billion, while reports assume that Saudi Arabia is in talks with Egypt for a similar deal to develop Ras Gamila coastal zone overlooking the Red Sea