Abu Dhabi buys 20% Algerian Shell venture
Posted: 07 April 2008
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Mubadala Development Company (Mubadala) has announced that its wholly-owned subsidiary, Liwa Energy Ltd. has purchased a 20% stake in Shell’s current exploration and production ventures in Algeria.
Shell holds two production sharing contracts in the Reggane Djebel Hirane and Zerafa permits in Algeria where it is conducting an exploration and appraisal campaign in partnership with Sonatrach, the Algerian national oil and gas company.
The revised interests in the Reggane Djebel Hirane and Zerafa Production Sharing Contracts are Sonatrach 25% (carried interest during exploration) Shell affiliates 60% and Mubadala’s Liwa Energy 15%.
Mubadala, the investment and development company of the Abu Dhabi government, is at the forefront of expanding and diversifying the Emirate’s economy through key investments both locally and globally.
“This agreement is another example of Mubadala’s increasing interest in Algeria , where the company has already made a number of significant investments in the energy sector, including several power stations and oil and gas projects,” the company said.
Among these is the Hadjret Independent Power Project, which represents over a fifth of today’s generation capacity in Algeria with initiatives including a new-build natural cycle gas-fired power station in Tipaza.
Mubadala is also involved in the construction of the first Algerian aluminum smelter at Beni Saf, which will be a significant employer in the region.
This agreement is part of the strategic alliance formed in 2005, and signed in Abu Dhabi, between Mubadala and Shell to cooperate in the economic development of new and existing hydrocarbon resources, pursue research and development of economically viable and environmentally acceptable energy solutions in the Middle East & North Africa, outside Abu Dhabi. The agreement also provides learning and development opportunities with Shell to enhance the professional development of select UAE nationals. |
