Total, Shell Sign Energy Development Agreements with Oman
Total and Shell revealed on Sunday that they have both signed energy development agreements with the government of Oman.
As part of the deals, the companies will develop several natural gas discoveries in the Greater Barik area onshore Block 6, with the objective of an initial gas production of around 500 million cubic feet per day.
Total said it would use its equity gas entitlement from the project as feedstock to develop a regional hub for Liquefied Natural Gas (LNG) bunkering services in Oman.
“We are pleased to sign this Memorandum of Understanding (MoU) with the Sultanate of Oman that will give us access to new gas resources and the opportunity to develop an integrated gas project,” Arnaud Breuillac, president of exploration and production at Total, said in a company statement.
“We will bring our expertise in LNG and will introduce access to a new gas market for the Sultanate. Developing an LNG bunkering service will generate in-country value and job opportunities and will support industry diversification through fostering the shipping activity in Oman,” he added.
In addition to developing the Greater Barik area’s gas resources, Shell’s MoU with the government of Oman covers renewable energy developments.
Commenting on its agreement with the government of Oman, Maarten Wetselaar, Shell’s integrated gas and new energies director, said the company was pleased to have the opportunity to take Shell’s “long and proud” history in Oman to new levels.
“We are hopeful we can use Shell’s integrated gas and new energies investment to accelerate Oman’s diversification and industrialization agenda,” Wetselaar said in a company statement.
Speaking after Total and Shell signed the deals with Oman, Liam Yates, Wood Mackenzie research analyst for Middle East and North Africa upstream, said the agreements will help secure Oman’s longer-term gas supply.
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