State-owned oil company QatarEnergy has agreed to supply up to 18 million barrels each year of Qatar Land and Qatar Marine crude oils to Shell PLC (LSE:SHEL, NYSE:SHEL), starting in January.
QatarEnergy said in a press release it had made the agreement with Shell International Eastern Trading Company.
Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs and the president and chief executive of QatarEnergy, stated: “We are delighted to sign our first ever five-year crude sales agreement. This 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.
“We look forward to building on our historic relationship and hope we achieve greater success with Shell.”
Shell shares were trading 0.3% lower as of 8.50am on Thursday.