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Shell, Total sign gas development deals in Oman

by Jonathan Sheikh-Miller on May 14, 2018


Shell signs its memorandum of understanding with the Oman government.
Shell signs its memorandum of understanding with the Oman government.

Shell Gas & Power Developments has signed a memorandum of understanding (MoU) with Oman’s government to cover proposed energy development projects in Oman. The agreement covers upstream gas exploration and development, gas-to-liquids (GTL), liquefied natural gas (LNG) and renewable energies.

The MoU sets out an initial mutual understanding between Shell and Oman and serves as a platform for further negotiations on the proposed developments. Under the agreement, Shell is to operate an upstream project with France's Total and the Oman Oil Company (OOC) as partners. It will also operate a GTL project with the OOC as a partner.

The proposed investments are intended to help Oman meet its energy needs and growth aspirations.

Total and Shell, as operator, will develop several natural gas discoveries located in the Greater Barik area on onshore Block 6 with respective shares of 25% and 75%.

On signing the agreement, Maarten Wetselaar, Shell Integrated Gas & New Energies director, said: “Shell has a long and proud history in Oman, and we are pleased to have the opportunity to take it to new levels through our proposed programme of development and investment in the country. We are hopeful we can use Shell’s integrated gas and new energies investment to accelerate Oman’s diversification and industrialization agenda. The proposals could also enhance in-country value, resulting in value and job creation in Oman’s economy.”

Chris Breeze, Shell’s country chair in Oman, said: “We are focused on maximising value for Oman and Shell by sustainably developing the country’s resources and increasing the share of renewable energy in Oman’s energy mix. This is in line with Shell’s aim to provide more and cleaner energy solutions.”

The MoU sets out an initial mutual understanding between Shell and Oman and serves as a platform for further negotiations on the proposed developments.

Meanwhile, Total will use its equity gas entitlement as feedstock to develop a regional hub for LNG bunkering to supply fuel to marine vessels. This will be achieved thanks to a new small-scale modular liquefaction plant to be built in Sohar port.


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