Shell and Total signed interim upstream agreements with Oman’s ministry and state energy companies for developing integrated gas projects to meet increasing domestic demand.
The international companies will invest in gas exploration and production in partnership with Petroleum Development Oman (PDO) and Oman Oil Company (OOC), Shell and Total said in separate statements. The upstream agreement covers gas acreage in the northern part of Block 6, Greater Barik area, located to the west of the existing Saih Rawl gas field operated by PDO.
The integrated project includes a downstream development by which Total and OOC will supply build and operate a 1 million tons per annum (Mtpa) LNG plant and develop a LNG bunkering hub in the port of Sohar.
Meanwhile, Shell and OOC’s share of the upstream project will be integrated with the development of a gas-to-liquids plant (GTL) currently under discussion, to be developed and operated by Shell in partnership with OOC, Shell said.
“Total is pleased by this new step towards the development of an LNG bunkering hub in Sohar and is grateful to the Government of Oman for his continued support. We are confident that the project will help diversify the gas sector in Oman and support the economic development of the port of Sohar and its region,” said Stephane Michel, senior vice president, Exploration-Production Middle East & North Africa of Total. “As a leading integrated gas player, Total is committed to bringing the best of its expertise to develop and operate this one of a kind integrated gas project.”
Chris Breeze, Shell’s country chairman in Oman, said: “Today’s agreement is a significant step forward. We hope that the development of gas resources destined for the integrated projects will play an important role in generating in-country value and diversifying Oman’s economy. This agreement marks a new chapter in Shell’s close partnership with the government of Oman.”
The companies will finalise definitive agreements which will underpin the long-term success of the energy projects which were first outlined in the Memorandum of Understanding (MoU) signed in May 2018.