Qatar signs ExxonMobil Mozambique pact as Perry visits
State-owned Qatar Petroleum is to join ExxonMobil in exploring offshore Mozambique under a deal that came as US Energy Secretary Rick Perry visited the country, following its surprise exit from OPEC last week. QP’s acquisition of a 10% stake in three offshore blocks operated by ExxonMobil diversifies their already extensive cooperation. The US major has stakes of 10-30% in Qatar’s LNG ventures and supplies the domestic market from the 2 Bcf/d Al Khalij Gas project. QP is also thought to be on the cusp of approving the Golden Pass LNG export project in Texas, with ExxonMobil as one of the partners. “This is a milestone for QP as it marks its first foray into Mozambique’s promising offshore basins,” QP CEO and Qatari energy minister Saad Al-Kaabi said in a statement Saturday, noting the Mozambique blocks lie in the under-explored Angoche and Zambezi basins. It came the same day as a visit by the US energy secretary, and after Qatar announced last week it was ending its 60-year membership of OPEC, a move that some see as inflaming Gulf tensions given Qatar’s diplomatic standoff with Saudi Arabia and the UAE. The talks with Perry “focused on strengthening existing energy partnerships between Qatar and the US,” QP said. Perry reiterated US support for “strategic energy ally” Qatar and “advocated for the expansion of joint partnerships with the US,” the US energy department said. From Doha, Perry went to Saudi Arabia, where he stressed the importance of “stable supply and market values” at a meeting with energy minister Khali al-Falih, the department said. Qatar’s withdrawal from OPEC sparked speculation that the country, which has insisted the move is not political, may have grown worried about legal risks to its worldwide LNG business. Legislative moves in the US intended to target OPEC have gained renewed traction, and OPEC officials are thought to have begun looking at ways to counter the legislation. “We left because it is our decision, and our assessment is that it’s not good for Qatar to remain [in OPEC],” Kaabi told reporters last Wednesday. “We don’t see the value added for Qatar to remain.” The exploration deal is subject to approval by Mozambique’s authorities and QP will be joining ExxonMobil, with a 50% stake in the blocks, state company ENH with 20%, and Russia’s Rosneft with 20%.