Mubadala signs deal with Egypt for Red Sea tract

21 January 2021 (Last Updated January 21st, 2021 16:17)

Mubadala Petroleum has signed the concession agreement with the Egyptian Government for oil and gas exploration in Block 4 in the Red Sea offshore Egypt.

Mubadala signs deal with Egypt for Red Sea tract
Shell operates the Block 4 in the Red Sea offshore Egypt with a 63% interest. Credit: D Thory from Pixabay.

Mubadala Petroleum has signed the concession agreement with the Egyptian Government for oil and gas exploration in Block 4 in the Red Sea offshore Egypt.

Covering an estimated area of 3,084km², the block was awarded by the Government of Egypt in the 2019 Red Sea Licensing Round. It is owned by South Valley Egyptian Petroleum Holding Company (Ganope).

The deal gives Mubadala Petroleum a 27% interest in Block 4, which is located in the Northern Red Sea in an area adjacent to the prolific Gulf of Suez Basin.

Shell operates the block with a 63% interest while Egyptian state-owned exploration and production company Tharwa holds the remaining 10% stake.

Mubadala expects the concession to have the potential to unlock substantial new prospects.

The UAE-based firm said that will undertake subsurface studies and acquire 3D seismic during the initial three-year term for the block.

Mubadala Petroleum CEO Dr Bakheet Al Katheeri said: “The addition of Red Sea Block 4, marks a further extension of our Egypt portfolio with a new high impact growth opportunity alongside a world-class partner in Shell.

“This new exploration block will support our strategy of finding and, if successful, developing hydrocarbons for Egypt’s expanding market and delivering organic growth opportunities to add to our existing business in the country.”

Mubadala Petroleum currently owns 10% stake in the ‘Shorouk’ concession, which contains the producing ‘Zohr’ gas field, as well as and a 20% interest in the ‘Nour’ exploration concession. The two concessions are located in the Mediterranean Sea offshore Egypt.

In May 2020, Mubadala Petroleum and its partner Tap Oil said they would proceed further with the drilling of three development wells, namely MNA -25, MNA -26 and MNA-27, in the Manora oil field in the Gulf of Thailand.