QatarEnergy invests in Uruguay offshore blocks

• Buys into three exploration areas
• Expands South American footprint
• Financial details undisclosed

QatarEnergy has acquired interests in three offshore exploration blocks in Uruguay from BG International, a subsidiary of the UK’s Shell, as part of its global expansion strategy.

Under the agreements, the state-backed oil and gas producer has acquired an 18 percent interest in block “Off-4”. Shell holds 32 percent, while US-based APA Corporation, the operator, retains 50 percent.

QatarEnergy acquired a 30 percent interest in block “Off-2”, which is operated by Shell with a 70 percent interest.

In the third exploration block, “Off-7”, the Qatari company purchased a 30 percent interest, with the operator Shell retaining 40 percent. US energy giant Chevron holds the remaining 30 percent.

These agreements mark QatarEnergy’s first entry into Uruguay’s upstream sector and expand its footprint in South America, CEO Saad Al-Kaabi said in a statement.

The three blocks are located off Uruguay’s Atlantic coast, covering areas of between 11,155 and 18,227 square kilometres and water depths ranging from 40 to 4,000 metres.

No financial details were given.

Further reading:

• Qatar boosted by Congo hydrocarbon discovery
• US deal offers Qatar a golden pass for overseas LNG
• Qatari LNG shutdown puts 11% of global helium supply at risk

Iranian attacks in March knocked out nearly 17 percent of Qatar’s LNG export capacity, with Al-Kaabi estimating annual revenue losses of $20 billion for the Gulf state.

The International Energy Agency estimates that 84 energy facilities across Iran’s Gulf neighbours were damaged in the first wave of attacks in March and April, including 34 that suffered “serious or very serious” damage.