#Qatar Energy to take 17% stake in Shell-operated blocks in Egypt's Red Sea | ZAWYA MENA Edition

Qatar Energy to take 17% stake in Shell-operated blocks in Egypt's Red Sea  | ZAWYA MENA Edition

Shell Exploration & Production B.V., a subsidiary of Royal Dutch Shell plc. has signed farm out agreements (FOAs) with state-owned QatarEnergy, under which QatarEnergy will acquire 17 percent stake in each of Shell-operated Block 3 and Block 4 in the Egyptian Red Sea.

The FOAs, contracts which allow a project participant to add new parties to the project by selling a percentage stake in the venture, are subject to government and regulatory approvals, without prejudice to pre-emption rights, Shell Egypt said in a statement on Monday.

This follows an earlier dilution of Blocks 3 and 4 to BHP Petroleum (Egypt) Ltd., which is also subject to government and regulatory approvals.

Shell will remain the operator in both blocks, it said. Following the FOA, Qatar Energy will hold 17 percent in Block 3, with Shell holding 43 percent. BHP and Egypt's Tharwa Petroleum will hold 30 percent and 10 percent respectively.