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QP Buys Stake in Mozambique Offshore

By  AOG Staff Monday, 11 March 2019 19:58
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Italian oil and gas operator Eni S.p.A. and Qatar Petroleum have entered into a farmout agreement which will allow Qatar Petroleum a 25.5 percent participating interest in Block A5-A offshore Mozambique.

Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, and President & CEO of Qatar Petroleum. Photo: Qatar Petroleum
Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, and President & CEO of Qatar Petroleum. Photo: Qatar Petroleum

The deal  represents a huge step in the strategic path that Eni and Qatar Petroleum undertook to strengthen their partnership worldwide, said Eni CEO Claudio Descalzi.

The agreement is subject to customary regulatory approvals by the government of Mozambique. Following such approvals, the partners holding participating interest in the block will be affiliates of each of Eni (Operator) with a 34% participating interest, Empresa Nacional de Hidrocarbonetos (ENH) with a 15% participating interest, Sasol with a 25.5% participating interest, and Qatar Petroleum with a 25.5% participating interest.

Commenting on this occasion, Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, and President & CEO of Qatar Petroleum, said: “We are pleased to sign this agreement, with our valuable partner Eni, to participate in exploring this frontier offshore basin and strengthen our presence in Mozambique. I would like to take this opportunity to thank the Mozambican authorities and our partners in this block for their cooperation and support”.

Al-Kaabi added: “By entering into this new agreement, we aim at expanding our exploration portfolio to ensure diversification of geographies as well as geologies and basins. Having a large and diversified exploration portfolio is a key long-term objective for Qatar Petroleum and essential for success.”

Block A5A lies in the Angoche basin and is located adjacent to block A5B for which an affiliate of Qatar Petroleum entered into an agreement in December 2018 with an ExxonMobil affiliate to acquire a 10% participating interest. Block A5A covers a total area of around 5,133 km2 in water depths ranging from about 300 to 1,800 meters.

In line with Qatar Petroleum’s growth strategy, this opportunity further strengthens Qatar Petroleum’s international oil and gas portfolio with the addition of a block in a frontier exploration basin with significant hydrocarbon resource potential.

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