Shell Exploration & Production B.V., subsidiary of Royal Dutch Shell plc., signed farm out agreements (FOAs) with QatarEnergy, under which QatarEnergy will acquire 17% stake in each of Shell-operated Block 3 and Block 4 in the Egyptian Red Sea.
The FOAs are subject to government and regulatory approvals, without prejudice to pre-emption rights, Shell announced.
This follows an earlier dilution of Blocks 3 and 4 to BHP Petroleum (Egypt) Limited, which is also subject to government and regulatory approvals.
Shell will remain the operator in both blocks.
“Bringing such reliable partners into the project will enable us to leverage our joint expertise as we progress the opportunity. It is also worth highlighting that we were able to attract new market entrants thanks to the favorable investment climate in Egypt,” Khaled Kacem, Shell’s Vice President & Country Chair for Egypt, commented.