“This agreement demonstrates our commitment to the oil and gas sector in the Arab Republic of Egypt, and further strengthens our partnership with our valued partner Chevron”, Saad Sherida Al-Kaabi, president and chief executive of state-owned QatarEnergy, said in a company statement.
"We look forward to the drilling of the first exploration well on this block and to a successful and promising outcome”, Al-Kaabi, who is also Qatar’s energy affairs minister, added in the statement on the company’s website.
Chevron currently holds a 63 percent operating stake in the concession. Woodside Energy Group Ltd. owns 27 percent while Egypt’s state-owned Tharwa Petroleum Co. has the remaining 10 percent.
QatarEnergy did not disclose the purchase price and when it expects to complete the transaction.
North El-Dabaa lies about 10 kilometers (6.21 miles) from shore and has water depths of 100 to 3,000 meters (328.08 to 9,842.52 feet).
Chevron holds 1.51 million net acres in aggregate in North El Dabaa and North Sidi Barrani, according to Chevron’s 2023 asset inventory published on its website. As of the end of the year, Chevron had 2.45 million net acres in the North African country. Besides North El Dabaa and North Sidi Barrani Chevron owns operating stakes in Block 1 and Nargis and non-operating stakes in North Cleopatra and North Marina.
Earlier this year QatarEnergy announced a deal to acquire a 40 percent stake each in the Cairo and Masry exploration blocks offshore Egypt from sole owner Exxon Mobil Corp. The concession agreements for the blocks cover about 11,400 square kilometers (4,401.56 square miles) in water depths of 2,000 meters (6,561.68 feet) to 3,000 meters.
“We look forward to working with our valued long-term strategic partner ExxonMobil, as well as with the Egyptian Natural Gas Holding Company and the Egyptian Ministry of Petroleum and Mineral Resources, in this promising and prospective region”, Al-Kaabi said in a company statement May 12.
On March 29, 2022, QatarEnergy signed an agreement with Texas-based ExxonMobil to purchase a 40 percent stake in the North Marakia exploration block on Egyptian waters in the Mediterranean.
QatarEnergy previously entered deals with Shell PLC to buy a 17 percent working stake each in blocks 3 and 4 on the Egyptian side of the Red Sea, as announced by QatarEnergy December 13, 2021.
In October 2023 Egypt awarded a consortium consisting of QatarEnergy, Italian government-controlled Eni SpA and British energy major BP PLC exploration and production rights for the East Port Said block, or EGY-MED-E8. QatarEnergy and BP each own a 33 percent stake in the joint venture. Operator Eni has the remaining 34 percent.
