Mubadala Petroleum wins a contract for oil and gas exploration in the Red Sea, Egypt

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 square kilometers, which the Egyptian government granted the right to explore through a round Bids held in 2019.

Under this agreement, Mubadala Petroleum owns a 27% participation stake in the sector, while the operator “Shell” owns a 63% stake, and the Egyptian “Tharwa Petroleum” 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 undersea exploration studies 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, said: “Sector 4 in the Red Sea is a new extension of our operations in Egypt while providing a valuable opportunity to expand our activity and by working with a strategic partner such as Shell. It will support research and exploration in this sector, if successful, 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 Egypt.

It is worth noting that Mubadala Petroleum owns, in addition to the “Block 4” concession in the Red Sea, a 10% stake in the offshore “Shorouk” 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.