Shell subsidiary sells stakes to QatarEnergy in offshore blocks of Uruguay
QatarEnergy acquired three offshore exploration blocks in Uruguay from Shell's subsidiary, marking its first entry in the South American nation's upstream energy sector. The state-owned firm said on Wednesday that it would not disclose financial details.
Shell, a key partner in Qatar's energy projects, is also strengthened by the Qatari energy giant’s South American exploration expansion.
Over the past few years, the company has built up an upstream portfolio, which includes interests in Brazil and Cyprus as well as Egypt.
QatarEnergy acquired 30% of the?stakes? in blocks OFF-2 and OFF-7 where Shell holds 70% and 40%, respectively. QatarEnergy acquired an additional 18% stake in block OFF-4.
APA Corporation is the operator of block OFF-4. Shell has a 32% stake. QatarEnergy reported that Chevron owns the remaining 30% stake in block OFF-7.
QatarEnergy CEO Saad Sherida Al-Kaabi stated that "we are pleased to strengthen our relationships with our strategic partners Shell through these agreements which mark our first entry into Uruguay's upstream industry."
The three blocks are located in Uruguay's Atlantic Coast at water depths between 40 m and 4,000 m. The company stated that they cover an area between?11155 and 18.227 sq km.
Companies hope to duplicate the massive discoveries that were made recently in Namibia on the opposite side of Atlantic because they share a similar geological history.
(source: Reuters)
