Mubadala signs an agreement for oil exploration in Egypt – the economic – the UAE economy

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Engineer Tarek El Molla, Minister of Petroleum and Mineral Resources in Egypt, signed a concession agreement for oil and gas exploration in Sector 4 in the deep waters of the Red Sea, affiliated to the Egyptian Holding Company for the South Valley with an area estimated at 3084 km2, which the Egyptian government granted the right to explore through Bidding round held in 2019.

Under this agreement, Mubadala Petroleum owns a 27% participation stake in the sector, while Shell, the operator, owns a 63% stake, and the Egyptian Tharwa Petroleum Company owns the remaining 10%.

Sector 4 is located in the north of the Red Sea in an area adjacent to the Gulf of Suez Basin rich in natural resources, and the partners will commit to conducting exploration studies under the sea in this sector, and collecting seismic data for the area using three-dimensional techniques, during the first three years of the exploration phase.

Dr. Bakhit Saeed Al Kathiri, CEO of Mubadala Petroleum Company, said: The addition of Sector 4 in the Red Sea represents a new extension of our operations in Egypt while providing a valuable opportunity to expand our activities and work with a strategic partner such as Shell. Research and exploration operations in this sector, if successful, will support our strategy of extracting and manufacturing hydrocarbons in order to contribute to supporting the stability and expansion of the Egyptian market while providing growth opportunities for our operations in this sister country.

It is noteworthy that Mubadala Petroleum owns, in addition to the concession of Sector 4 in the Red Sea, a 10% stake in the offshore Shurooq gas field concession that includes the Zohr natural gas field, as well as 20% in the Noor offshore gas concession. Both are located in the Mediterranean Sea off the coast of Egypt.

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