The Ministry of Energy of Oman has signed a concession agreement 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 Saih Rawl gas field in the country.

Oman's new energy exploration direction

Oman’s Ministry of Energy stated that the project is expected to reach 500 million cubic feet of natural gas production per day and is expected to be launched within the next two years. The two parties also signed a separate natural gas sales agreement for the natural gas produced in the block. These two agreements follow the temporary upstream agreement signed in February 2019. Mohammed Al Rumhi, Minister of Energy and Minerals of Oman, said: “The project will further maximize the potential of Oman’s energy industry, in line with the Sultanate’s strategy to create growth opportunities in all energy streams, and in line with the priorities of Oman’s 2040 vision.” Block 10 is located in Sehror, Al Usta Province, Oman, about 400 kilometers away from the capital Muscat, covering an area of about 1,200 square kilometers.

The company stated that under the concession agreement, Shell is the operator of Block 10 and holds 53.45% of the working rights, while OQ and Marsa LNG hold 13.36% and 33.19%, respectively. In the initial phase, Oman Petroleum Development Corporation is representing the risk partners in the 10th block to build the infrastructure of the project, including the main pipeline to the Saih Rawl natural gas processing facility. The joint venture will drill and connect oil wells to maintain production after the initial phase. Shell and Oman Energy Development Company also signed an agreement to process natural gas from Block 10 of EDO’s Saih Rawl facility. Shell and Oman agreed that the company will develop options for a separate downstream natural gas project in which Shell can produce and sell low-carbon products and support hydrogen development in the Sultanate. Any project will be subject to agreements and future investment decisions. Keywords: engineering construction, engineering news

"We are studying how Shell can help Oman develop low-carbon energy in the future," said Wael Sawan, Shell's director of natural gas, renewable energy and energy solutions. TotalEnergies said in a separate statement that it has signed a number of agreements with the Oman Ministry of Energy to promote the sustainable development of the country's natural gas resources. These include the creation of Marsa LNG, an integrated company consisting of TotalEnergies (80%) and OQ (20%), which signed a concession agreement with Shell to produce natural gas from Block 10. TotalEnergies' production in Block 10 is expected to reach approximately 24,000 barrels of oil equivalent per day in 2023. The company also signed a natural gas sales agreement under which Marsa LNG will sell 10 blocks of natural gas to the Oman government for a period of 18 years, or until the Marsa LNG plant starts. "We are very pleased to sign these agreements with the Sultanate of Oman to further develop our activities in the country while developing its energy sector in a more sustainable manner," said Laurent Vivier, Senior Vice President of Exploration for the Middle East and North AfricaEditor/XingWentao