The Government of Oman has entered a memorandum of understanding (MoU) with Shell and Total for the development of natural gas resources in the country, including both upstream and downstream businesses.
As per the deal, the companies will develop several natural gas sites in the Greater Barik area of Block 6. Shell will operate this upstream project with a 75% stake, while the remaining interest will be held by Total.
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The partners initially aim to produce around 500 million cubic feet per day (MMcfd) of gas and eventually increase output to 1 billion cubic feet per day (bcf/d) at a later stage.
Total exploration and production president Arnaud Breuillac said: “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.”
Total will use its equity gas entitlement from the project as feedstock to develop a regional hub for liquefied natural gas (LNG) bunkering services in Oman.
In addition, a new small-scale modular liquefaction plant comprising a train of around 1Mt per year will be built in Sohar port.
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By GlobalDataBreuillac 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, as well as support industry diversification through fostering the shipping activity in Oman.”
