| 19 April 2024, Friday |

Oman and Shell sign gas concession pact for Block 10 in Saih Rawl field

The Ministry of Energy in Oman signed a concession deal with Shell Integrated Gas Oman BV, a subsidiary of Royal Dutch Shell, and its partners, OQ and Marsa Liquefied Natural Gas, to develop and produce natural gas from block 10 of the country’s Saih Rawl gasfield.

The project is projected to produce 0.5 billion cubic feet of gas per day and to begin operations within the next two years, according to a statement posted on Oman’s ministry of energy’s Twitter account on Tuesday.

According to the government, the parties also inked a separate gas sales deal for gas generated from the block. The two agreements come on the heels of an interim upstream accord struck in February of this year.

“This project will further maximize the potential of Oman’s energy industry, in keeping with the Sultanate’s goal to develop growth possibilities across all energy streams and in line with Oman’s Vision 2040 priorities,” Oman’s Minister of Energy and Minerals, Mohammed Al Rumhi, stated.

Block 10 is located in Saih Rawl in Oman’s Al Wusta Governate, roughly 400 kilometers from the capital Muscat, and spans an area of around 1,200 square kilometers.

According to the concession agreement, Shell is the operator of block 10, with a 53.45 percent working interest, with OQ and Marsa Liquefied Natural Gas owning 13.36 percent and 33.19 percent, respectively.

Petroleum Development Oman is constructing the project’s infrastructure, including the main pipeline to the Saih Rawl gas processing plant, on behalf of the block 10 venture partners during the initial phase.

Shell and Energy Development Oman (EDO) have also agreed to process natural gas from block 10 at EDO’s Saih Rawl plant.

Shell and Oman agreed to explore alternatives for a second downstream gas project in which Shell might create and sell low-carbon goods while also supporting the development of hydrogen in the Sultanate, according to a statement from Shell. It went on to say that any project would be subject to further agreements and future investment choices.

“We are investigating how Shell might assist Oman in producing low-carbon energy in the future,” said Wael Sawan, director of Shell Integrated Gas, Renewables, and Energy Solutions.

TotalEnergies stated in a separate statement that it has signed multiple contracts with Oman’s energy ministry for the development of sustainable energy.

TotalEnergies said in a separate statement that it has inked multiple agreements with Oman’s energy ministry for the long-term development of the country’s natural gas resources.

These include the formation of Marsa LNG, a joint venture between TotalEnergies (80%) and OQ (20%) that signed a concession deal with Shell to generate natural gas from Block 10.

TotalEnergies expects Block 10 output to reach around 24,000 boe/d by 2023.

The business also inked a gas sales deal under which Marsa LNG would sell natural gas from block 10 to the government of Oman for 18 years, or until the Marsa LNG plant is operational.

“We are pleased to sign these agreements with the Sultanate of Oman and to expand our activities in the country while contributing to the development of its energy sector in a more sustainable manner,” said Laurent Vivier, TotalEnergies’ senior vice president for Middle East and North Africa Exploration and Production.

  • The National News