Qatar announced a major milestone for its crude oil exports as it signed a five-year crude sales deal with Shell. The agreement calls for the supply of 18 million barrels of oil annually for five years.
QatarEnergy signed the deal with Shell International Eastern Trading Co. and has committed to supply Qatar Land and Qatar Marine crude oils to the international oil giant’s trading arm in Singapore.
Long-term partnership
The deal is part of QatarEnergy’s strategy to engage long-term business partnerships. In a statement, Saad Sherida Al-Kaabi, the minister of state for energy affairs and president and CEO of QatarEnergy, said, “We are delighted to sign our first-ever five-year crude sales agreement.”
In addition, he said that the “agreement further strengthens QatarEnergy’s relationship with Shell, which is not only a reliable crude oil off-taker, but also a major customer and a strategic partner of QatarEnergy.”
Read: QatarEnergy and Sinopec unite for largest LNG expansion
QatarEnergy and Shell maintain a longstanding strategic partnership. Both have collaborated on several joint undertakings and investments in the energy sector in Qatar and internationally. Some of these partnerships include QatarEnergy LNG projects and the Pearl GTL Plant, among others.
QatarEnergy milestones
The deal comes on the heels of another major accord signed by QatarEnergy for its liquefied natural gas (LNG) business. In October, QatarEnergy signed a sale and purchase agreement with Italy’s Eni to supply up to 1 million tons of LNG. In a media statement, the state-run petroleum company revealed that it will deliver LNG to Italy for 27 years beginning in 2026.
Furthermore, QatarEnergy signed another deal with French firm TotalEnergies. The agreement calls for QatarEnergy to supply up 3.5 million tons per annum of LNG to France for 27 years.
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