QatarEnergy enters offshore Atlantic exploration in Canada

Doha: QatarEnergy signed an agreement with ExxonMobil Canada to farm into an exploration license offshore the province of Newfoundland and Labrador in Canada.

The transaction has completed all necessary processes of consents from the Canada- Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB), as per a press release issued by QatarEnergy.

According to the agreement, the state-owned national oil company, QatarEnergy (formerly Qatar Petroleum) will hold a 40% participating interest in license EL 1165A, where the Hampden exploration well activities are planned. The remaining interest is held by ExxonMobil Canada.

Commenting on this occasion, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said, "We are pleased to conclude this agreement which represents our first entry into Offshore Canada, in an established producing basin with the leading producer in the area. This builds on our strong partnership with ExxonMobil and is an important addition to our growing international exploration portfolio."

Minister Al-Kaabi added, "I would like to take this opportunity to thank the C-NLOPB for supporting the transaction, and to thank ExxonMobil, our strategic partner, for their cooperation and efforts to conclude this agreement."

The block covered by this license is located approximately 450 km east of the city of St. John's in Newfoundland and Labrador, in water depths of approximately 1,100 meters.

Qatar has extensive oil and gas co-operation with the US oil giant ExxonMobil cutting across crude oil, liquefied natural gas through firms Qatargas and Rasgas, natural gas shipping and petroleum research,; the new venture marks a fresh foray into the north American oil and gas industry.