Shell Integrated Gas Oman, a subsidiary of Royal Dutch Shell, and its partners have signed a concession agreement to develop and produce natural gas from the Block 10 of the Saih Rawl gas field in Oman.
The agreement has been signed with the Ministry of Energy and Minerals on behalf of the Oman government.
Other concession partners include Oman’s national petroleum investment company OQ and Marsa Liquefied Natural Gas, a joint venture of OQ and France’s TotalEnergies.
Separately, gas sales agreement has been signed by the parties for production from the block.
Shell integrated gas, renewables and energy solutions director Wael Sawan said: “These agreements represent a major step for Shell and for our relationship with Oman.
“They generate value and strengthen our Integrated Gas business, which we need to deliver the energy Oman and the world need today. And we are looking at how Shell can help Oman with developing low-carbon energy in the future.”
Under the concession agreement, Shell will serve as the operator of Block 10 with a 53.45% stake. Marsa Liquefied Natural Gas and OQ will own 33.19% and 13.36% stakes, respectively.
Covering an area of around 1200km2, the Block 10 is planned to start production within the next two years.
The block, which is located in Saih Rawl in the Al Wusta Governate of Oman, is expected to have peak production capacity of 0.5 billion standard cubic feet of gas per day (bscf/d).
Currently, Petroleum Development Oman (PDO) is developing the infrastructure for the project, under initial phase. This includes the main pipeline to the Saih Rawl gas processing facility.
After the initial phase, the partners will drill and hook up wells to maintain the production at the block.