Cairo – Mubasher: Shell Exploration & Production (Shell E&), a subsidiary of Royal Dutch Shell, signed contracts with QatarEnergy, under which the latter will acquire 17% stake in each of Shell-operated Block 3 and Block 4 in Egypt’s Red Sea.

The farmout agreements will be subject to the approvals of both government and regulatory authorities, without prejudice to pre-emption rights, according to a press release on Monday.

Shell will remain the operator in blocks 3 and 4 with ownership stakes of 43% and 21%, respectively.

Shell’s Vice President and Country Chair for Egypt, Khaled Kacem, said: “Bringing such reliable partners into the project will enable us to leverage our joint expertise as we progress the opportunity.”

Kacem added that Shell was able to “attract new market entrants thanks to the favourable investment climate in Egypt.”