Total signs natural gas deal with Oman

May 14, 2018
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Total signed a preliminary agreement with Oman’s government to develop natural gas resources in the Sultanate and bring online an LNG plant for bunkering services.

Total and Shell as operator will develop several natural gas discoveries located in the Greater Barik area onshore Block 6 with respective shares of 25 per cent and 75 per cent, Total said in a statement.  Under the terms of the deal between both companies and before possible State back-in, the objective is to reach initial gas production of around 500 MMcfd with a potential to reach 1 bcf/d at a later stage.

“We are pleased to sign this MoU with the Sultanate of Oman that will give us access to new gas resources and the opportunity to develop an integrated gas project,” said Arnaud Breuillac, president exploration and production at Total. He added, “We will bring our expertise in LNG and will introduce access to a new gas market for the Sultanate. Developing an LNG bunkering service will generate in-country value and job opportunities, and will support industry diversification through fostering the shipping activity in Oman.”

Meanwhile, Total will use its equity gas entitlement as feedstock to develop a regional hub in Oman for Liquefied Natural Gas (LNG) bunkering service which will supply LNG as a fuel to marine vessels. This will be achieved by a new small-scale modular liquefaction plant to be built in Sohar port. The plant will comprise a 1 Mt per year train offering the flexibility for expansion as required by the development of the LNG bunkering market.

Total’s Oman production last year was 37 kboe/d in 2017, from Block 6 (4 per cent interest) and in Block 53 (2 per cent interest), as well as LNG through its participation in the Oman LNG (5.54 per cent)/Qalhat LNG (2.04 per cent) liquefaction complex with an overall capacity of 10.5 Mt/y.