Qatar Petroleum and Shell Partner in Namibia
Qatar Petroleum announced on Tuesday that it has entered into an agreement with Shell to become a partner in two exploration blocks offshore the Republic of Namibia.
Under the terms of the deal, which is said to be subject to customary approvals, Qatar Petroleum will hold a 45 percent participating interest in the PEL 39 exploration license in Block 2913A and Block 2914B. Shell will hold a 45 percent operated interest in the asset and the National Petroleum Corporation of Namibia (NAMCOR) will hold the remaining 10 percent stake.
The PEL 39 blocks are located in ultra-deep-water depths of about 8,200 feet, covering an area of approximately 4,750 square miles, Qatar Petroleum highlighted. This is the company’s second exploration license in Namibia. In August 2019, the business entered into agreements for participating in blocks 2913B and 2912 offshore Namibia.
“With this second exploration and production sharing agreement in Namibia, we are pleased to expand our exploration footprint in the country, and to further strengthen our presence in the southern Africa region,” Saad Sherida Al-Kaabi, the minister of state for energy affairs, and the president and chief executive officer of Qatar Petroleum, said in a company statement.
“Working on these promising and prospective blocks with our valued long-term partner, Shell, is another step in our stride towards achieving our international growth strategy. We look forward to working together with the Namibian Government, NAMCOR and Shell on these blocks,” he added in the statement.
According to Shell’s website, Shell Namibia Upstream BV currently has a 45 percent controlling interest in PEL 39, with Kosmos Energy holding a 45 percent stake and NAMCOR holding the remaining 10 percent interest. Shell completed three seismic surveys of PEL 39 between 2014 and 2019, the company notes on its website, adding that the purpose of the surveys was to identify geological structures below the seabed which might contain oil or gas.
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