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Shell Divests 27% Non-Working Interest in North Cleopatra Block

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Key Takeaways

  • Shell agrees to sell a 27% non-working interest in the North Cleopatra block to QatarEnergy.
  • SHEL keeps a 36% stake and operatorship, with Chevron and Tharwa Petroleum as other partners.
  • The offshore block, located at the frontier Herodotus basin, spans 3,400 sq km.

Shell plc (SHEL - Free Report) , the British oil and gas giant, has signed an agreement with QatarEnergy to sell a 27% non-working interest in the North Cleopatra block in Egypt. QatarEnergy has mentioned that the deal is contingent upon approvals from the Egyptian government. Per the terms of the agreement, Shell will retain a 36% participating interest and the operatorship of the block. The other partners in the block are Chevron Corporation and Tharwa Petroleum Company, holding 27% and 10% participating interests, respectively.

The North Cleopatra block, offshore Egypt, spans an area of more than 3,400 square kilometers. It is located in the frontier Herodotus basin at water depths of nearly 8,530 feet. In recent years, QatarEnergy has pursued a strategy aimed at expanding its global footprint by acquiring stakes in oil and gas blocks across several countries, including Guyana, Lebanon and South Africa, among others. This also includes certain offshore blocks acquired by QatarEnergy in Egypt.

SHEL’s Zacks Rank and Key Picks

SHEL currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Cheniere Energy Inc. (LNG - Free Report) , Oceaneering International (OII - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) . While Cheniere Energy sports a Zacks Rank #1 (Strong Buy) at present, Oceaneering International and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to enhance Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG both in the United States and internationally.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp had estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region.

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