Oman, the biggest oil producer in the Middle East outside OPEC, has signed an exploration and production sharing agreement with Shell, along with its partners OQ and TotalEnergies, to explore, appraise and develop natural gas resources and condensate in Block 11.
The agreement, which was signed September 15, establishes Shell as the operator of Block 11, holding a 67.5% working interest, with OQ and TotalEnergies holding 10% and 22.5% respectively. Oman’s ministry of energy and minerals said that the exploration activities would see the seismic acquisition of 1,400 sq km in late 2022, with few planned exploration wells to follow.
“There is a continuous focus in the ministry on enhancing the natural gas reserves of the Sultanate of Oman through exploration and appraisal activities undertaken by several companies in the country,” Salim Nasser Al Aufi, minister of energy and minerals in Oman said.
He added, “This agreement strengthens the strategic relations with partners in the sector such as Shell, TotalEnergies, OQ and others to ensure Oman’s energy security and attract more foreign investment, adding the highest value to the local supply chain.”
Block 11 is located on the western side of Oman in proximity to its prolific gas-rich Block 10.
“Shell’s entry into this block signifies a further commitment to Oman while enhancing and diversifying its gas supply,” Walid Hadi, Shell’s senior vice president and country chair in Oman said.
Shell, TotalEnergies and BP are some of the biggest international oil companies operating in Oman.
