Qatar Petroleum takes stake in Mozambique exploration block

FILE PHOTO: The logo of Qatar Petroleum is seen at its headquartes in Doha, Qatar, July 8, 2017. REUTERS/Stringer/File Photo

BEIRUT (Reuters) - Qatar Petroleum said on Monday it had struck a deal with Italy’s ENI to acquire a 25.5 percent participating interest in block A5A in the Angoche basin, offshore Mozambique.

The agreement between state-owned Qatar Petroleum and ENI, which operates the block, is subject to regulatory approvals by the Mozambique government, Qatar Petroleum said in a statement.

Following the approvals, Eni will hold a 34 percent participating interest in the block, while Sasol and Qatar Petroleum will hold 25.5 percent each and Empresa Nacional de Hidrocarbonetos (ENH) will hold 15 percent.

“Having a large and diversified exploration portfolio is a key long-term objective for Qatar Petroleum and essential for success, Saad Al-Kaabi, Qatar’s minister of state for energy affairs and President and CEO of Qatar Petroleum said in the statement.

Qatar, a tiny but wealthy country, is one of the most influential players in the liquefied natural gas (LNG) market due to its annual production of 77 million tonnes. It plans to boost capacity 43 percent by 2023-2024 and will be building four liquefaction trains for this increase.

Reporting by Dahlia Nehme; Editing by Susan Fenton and Mark Potter