Shell & Mubadala join forces in Algeria

Liwa Energy Ltd., a subsidiary wholly owned by Mubadala Development Company, purchased 20% of Shell’s current stake at the exploration and production ventures in Algeria.

Shell holds two production sharing contracts in Algeria where it conducts an exploration and appraisal campaign in partnership with Sonatrach, the Algerian national oil and gas company. The revised shareholders are Sonatrach with 25% interest, Shell affiliates 60% and Mubadala’s Liwa Energy with 15% interest. 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 one of Mubadala’s projects in the energy sector in Algeria, including several power stations and oil and gas projects.

The current partnership is part of the strategic alliance formed between Shell and Mubadala in 2005 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 selected UAE nationals.