Shell inks MoU to invest in Gas exploration & development in Oman

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13 May 2018

Muscat: Shell Gas & Power Developments B.V. (Shell) has signed on Sunday  a Memorandum of Understanding (MoU) with the Government of Oman to cover proposed energy development projects in Oman.

source: Shell Development Oman

The agreement covers upstream gas exploration and development, gas-to-liquids (GTL), liquified natural gas (LNG) and renewable energies, a press statement issued by Shell Oman development said.

The MoU sets out an initial mutual understanding between Shell and Oman and serves as a platform for further negotiations on the proposed developments.

Under the agreement, Shell is to operate an upstream project with Total and Oman Oil Company (OOC) as partners. It will also operate a GTL project with OOC as a partner.

The proposed investments will help Oman meet its energy needs and growth aspirations and are aligned with Shell’s strategy of building a resilient and relevant portfolio that is positioned for long term success.

“We are focused on maximising value for Oman and Shell by sustainably developing the country’s resources and increasing the share of renewable energy in Oman’s energy mix. This is in line with Shell’s aim to provide more and cleaner energy solutions”, Chris Breeze, Shell’s Country Chair in Oman, said in the press statement.

Total will use its equity gas entitlement as feedback to develop in Oman a regional hub for Liquefied Natural Gas (LNG) bunkering service to supply LNG as a fuel to marine vessels.

“(The MoU) will give us access to new gas resources and the opportunity to develop an integrated gas project” Arnaud Breuillac, President Exploration & Production at Total said in a press statement issued today by Total.

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

 


By: Hassan Shaban

Editing: Fatma al-Arimi