Shell Integrated Gas Oman, a subsidiary of Royal Dutch Shell, signed a concession agreement with the Oman Ministry of Energy and Minerals to develop and produce natural gas from block 10 in Oman, the firm announced Tuesday.
The agreement was signed in concert with Shell’s partners OQ and Marsa Liqueifed Natural Gas, a joint venture between Total Energies and OQ. The gas will be processed at the gas processing plant in Saih Rawl.
“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,” Wael Sawan Shell Integrated Gas, Renewables and Energy Solutions Director said in a statement.
Shell will hold a 53.45 percent working interest as the operator of block 10, with OQ and Marsa Liquefied Natural Gas LLC holding 13.36 percent and 33.19 percent respectively. For the initial phase, Petroleum Development Oman (PDO) is building the infrastructure for the project, including the main pipeline to the Saih Rawl gas processing facility, on behalf of the Block 10 venture partners. The venture will drill and hook up wells to maintain the production beyond the initial phase. The block is expected to reach production of 0.5 billion standard cubic feet of gas per day (bscf/d). Start up is expected within the next two years.
“We share a long and strategic collaboration with Shell and our other partners. This project will further maximise the potential of Oman’s energy industry, in line with the Sultanate’s strategy to create growth opportunities across all energy streams and in line with Oman’s Vision 2040 priorities,” Dr Mohammed Al Rumhi, Minister of Energy and Minerals in Oman said in the statement.
