Qatar Petroleum signs 30-year gas exploration deal with Shell, CNPC
17 May 2010
Qatar Petroleum (QP), Royal Dutch Shell and China National Petroleum Corp (CNPC) have signed a 30-year gas exploration and production agreement yesterday for Qatar Block D.
Under the agreement, the partners will jointly explore for natural gas in Block D, which covers an area of 8,089kms onshore and offshore Qatar and is located close to Ras Laffan.
Royal Dutch Shell, Europe's largest oil company will be the operator and hold a 75-per cent stake, while CNPC will hold the remaining 25 per cent.
The Block D concession is for pre-Khuff geological intervals, where the overlying Khuff horizon contains the super-giant North Field. Part of the Block D concession extends beneath the North Field.
The total term of this agreement is 30 years and starts with a five year First Exploration Period. During the exploration period, Shell and CNPC will implement a work programme 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.
''This is the second Qatar agreement dedicated to exploring hydrocarbons from the deep pre-Khuff reservoirs. QP is also preparing for additional pre-Khuff reservoir exploration tenders in the near future. Shell is a major investor in the development of Qatar's proven gas resources. I am delighted that they will now invest in exploration, said Abdulla bin Hamad Al-Attiyah, deputy prime minister and minister of energy and industry.