SMH, Shell, Qatar Energy Sign Partnership Agreement
On 18 July, in Nouakchott, Mr. Nani Ould Chrougha, the Minister of Oil, Mines, and Energy, Government Spokesman, supervised the signing of a partnership agreement between Shell, Qatar Energy, and the Mauritanian Society of Hydrocarbons (SMH).
The agreement was signed, on the Mauritanian side, by Mr. Tourad Ould Abdel-Baghi, the SMH Managing Director, on behalf of Qatar Energy Company, by Dr. Ali Al-Manah, the Director of Research and Exploration of the Company, and on the Shell company side, by Turker Sengonul, Director of Shell Mauritania.
Under the terms of this agreement, the entry of Qatar Energy Company into the field of exploration and production in Mauritania is confirmed at the scale of the Mauritanian coastal basin, particularly the maritime block C10, in which Qatar Energy Company holds 40 % of exploration and production contract.
The agreement will accelerate drilling operations at offshore Block C10 and increase the pace and quality of exploration in the adjacent Block C2.
The SMH Director General said that the agreement aims to accelerate the discovery process, noting that exploration operations are sure to show promising quantities of oil in Mauritania. On this occasion, the Ministry of Oil, Mines, and Energy welcomes a new the Qatar Energy company in the field of investment in Mauritania and the oil and energy companies currently operating in the country.
The ministry said the agreement provides an additional opportunity to enhance Mauritanian hydrocarbon capabilities by promoting oil and gas exploration operations in regional waters.
And as stipulated in the law (the Hydrocarbons Code), Mauritania’s share amounts to 10%, the costs of which are covered, which ensures that it avoids the financial risks of exploration operations, i.e. SMH does not pay any cost in the exploration phase and the objective sought through the taking of this share is to ensure the participation of our country in the technical and financial decision.
As for Mauritania’s share in the production phase, in the event of the discovery of an exploitable deposit, it will amount to 21% of the contract relating to block C10 and 25% of that of block C2 which is adjacent to it. Confirmation of the entry of Qatar Energy Company into the field of exploration in Mauritania and the expansion of Shell’s activity through its signature of the C2 contract in which the Mauritanian State holds a 25% share of the fields discovered is an important development in this current situation marked by a decline in foreign investment in exploration in Africa.
Shell had set specific criteria before selecting a partner with the best international specifications and followed a natural path for sorting companies, following which the choice fell on Qatar Energy because of its experience, its financial and technical solidity, and its international presence in production, storage, and marketing of oil and gas.
Qatar Energy is a company with a remarkable global presence due to its leading role in oil and gas activities, including exploration, production, refining, transportation, and storage.