Doha, Qatar. Shell shares are up after Qatar has bought a stake. Photograph: Alan Copson/Getty Images
A sovereign wealth fund from the oil-rich Gulf state of Qatar has added Shell to its growing roster of western investments by buying a holding in the company.
Shares in Shell were up by nearly 1% amid further speculation that the Middle East state was in "very advanced talks" to buy an even bigger stake – as much as 3%-5%.
"We are delighted to welcome the Qatar Investment Authority (QIA) as a long-term and major shareholder in Shell, particularly given our excellent strategic relationship with the Qatari state," said a Shell spokeswoman.
The Anglo-Dutch company declined to say what the size of the QIA holding was but stock exchange rules meant any stake over 3% would automatically trigger a public statement to the stock exchange.
The Middle East Economic Survey reported that Qatar's sovereign wealth fund was in very advanced talks to buy a holding of up to a 5%, which would make it the biggest single investor.
It also reported the Qataris were negotiating to buy a stake in Italy's major oil company, ENI, while the Gulf state recently took a 3% holding in French energy group, Total.
Qatar with its small population and huge hydrocarbon reserves is benefiting enormously from the historically high global oil price.
The Qatar Investment Authority has also been active recently buying into London-listed miner, Xstrata, as well as Barclays Bank.
Shell already has a close working relationship with the Gulf state because it operates the enormous Pearl liquefied natural gas project in that country.
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