Qatar Petroleum has signed a treaty to acquire a 25% stake of Total’s South Africa’s offshore exploration Block 11B/12B; a deal that would strengthen the French oil and gas group, Total’s, ties with the Qatari energy giant.
The acquisition would lead a new ownership structure of which Total will have 45%, Qatar Petroleum 25 %, CNR International 20% and Main Street will own 10%. Noted both oil companies, Total and Qatar Petroleum.
The Block 11B/12B which is located in the Outeniqua Basin, around 175 kilometers off the southern coast of South Africa, covers an area of 19,000 square kilometers with water depths ranging from 200 to 1,800 meters.
The agreement between Total and Qatar comes at a time when Qatar is having challenges with its Gulf neighbours, Saudi Arabia and the United Arab Emirates, who cut ties with Qatar in June following Qatar’s alleged terrorism involvement with its rival Iran which Qatar denied.
According to reports, Arnaud Breuillac, president of Total’s Exploration & Production division said, “Total is delighted to broaden its long-standing relationship with Qatar Petroleum and combine efforts to explore this promising region offshore South Africa”.
Meanwhile Qatar’s chief executive Saad al-Kaabi said, “This agreement is another step by Qatar Petroleum in expanding and reinforcing Qatar’s leading position in the field of energy across the globe”.
Qatar seeks to expand its gas capacity to 100 million tonnes a year from the current 77 million to cement its position as the world’s largest exporter of liquefied natural gas (LNG).