Monday, May 17, 2010

QP, Shell, PetroChina team up in Qatar Block

Qatar Petroleum, on behalf of the Government of the State of Qatar, has signed a new 30-year Exploration and Production Sharing Agreement with Shell and PetroChina for Qatar Block D.

Under the agreement, the partners will jointly explore for natural gas in Block D with Shell serving as operator with a 75% equity shale and PetroChina with a 25% share. Block D covers an area of 8,089 square kilometers onshore and offshore Qatar and is located close to a gas processing and compression plant in Ras Laffan.

It covers 3,123 square miles onshore and offshore Qatar. Block D extends beneath the North Field, which together with the South Pars field forms the largest natural gas reserve in the world.

The total term of this agreement is 30 years and starts with a five year exploration period. During this time, Shell and PetroChina will implement a work program including exploration technical studies, 2D and 3D seismic acquisition, processing, re-processing and interpretation, and drilling a number of exploration wells to the pre-Khuff formation.

In a success case, Shell and PetroChina will produce the natural gas under Qatar Petroleum's supervision. Under the agreement Qatar Petroleum will be the off-taker of any potential gas produced.

Peter Voser, CEO of Shell, said, "We are developing significant volumes of Qatar's proven resources through our two giant projects with Qatar Petroleum, Pearl GTL and Qatargas 4. I am pleased that we now have an opportunity, with PetroChina, to explore for new natural gas resources that could be used to further Qatar's economic development."

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