Mubasher: Mubadala Petroleum inked a concession agreement with the Egyptian Ministry of Petroleum and Mineral Resources for oil and gas exploration in the Red Sea Block 4 in Egypt.
Mubadala Petroleum, a wholly-owned subsidiary of Abu Dhabi-based Mubadala Investment Company, will hold a 27% participating interest in Block 4, with an area around 3,084 km2, according to a press release on Thursday.
Owned by the South Valley Egyptian Petroleum Holding Company (Ganope), Block 4 is operated by Shell with a 63% interest and Tharwa with 10%.
Located in an area adjacent to the prolific Gulf of Suez basin, the block was awarded by the Egyptian government in the 2019 Red Sea Licensing Round.
As part of the concession agreement, Mubadala Petroleum will undertake subsurface studies and 3D seismic during the first three-year term.
Commenting on the agreement, Mubadala Petroleum’s CEO, Bakheet Al Katheeri, said: "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."
Besides the Red Sea Block 4, Mubadala Petroleum owns a 10% stake in the Shorouk concession, containing the Zohr gas field, and a 20% stake in the Nour exploration concession.