Shell, PetroChina, Qatar Petroleum ink exploration deal
17 May 2010
Doha – Qatar Petroleum (QP), on behalf of the Government of the State of Qatar has signed a 30-year exploration and production sharing agreement (EPSA) with Shell and PetroChina Co Ltd for Qatar Block D.
Under the agreement, the partners will jointly explore for natural gas in Block D. Block D covers an area of 8,089 square kilometres onshore and offshore Qatar and is located close to Ras Laffan.
The total term of this agreement is 30 years and starts with a five year First Exploration Period. During the exploration period, Shell and PetroChina will implement a work programme including exploration technical studies, 2D and 3D seismic acquisition, processing, re-processing and interpretation, and drilling a number of exploration wells to the pre-Khuff formation.
Shell, as operator, will hold a 75% stake with PetroChina holding a 25% share. In a success case, Shell and PetroChina will produce the natural gas under Qatar Petroleum’s supervision. Under the agreement QP will be the off-taker of any potential gas produced.
This is the second Qatar agreement dedicated to exploring hydrocarbons from the deep pre-Khuff reservoirs. QP is also preparing for additional pre-Khuff reservoir exploration tenders in the near future. Shell is a major investor in the development of Qatar’s proven gas resources, and the deal marks a move to invest in exploration, with PetroChina – a new investor in Qatar.
This agreement makes the most of Shell’s pre-Khuff exploration experience in the region and QP’s expertise in the State of Qatar, according to Peter Voser, Shell’s CEO.
“We are developing significant volumes of Qatar’s proven resources through our two giant projects with Qatar Petroleum, Pearl GTL and Qatargas 4,” said Voser. “I am pleased that we now have an opportunity, with PetroChina, to explore for new natural gas resources that could be used to further Qatar’s economic development.
Zhao Dong, CFO of PetroChina, added: “We already enjoy a relationship with Qatar Petroleum and Shell and I am delighted that this cooperation is now extending to work within Qatar itself. China is an important downstream market and PetroChina is keen to build upstream partnerships with major resource holders like Qatar.”
