The agreement covers upstream gas exploration and development, gas-to-liquids (GTL), liquefied natural gas (LNG) and renewable energies. “The State General Reserve Fund is seeking to continue to diversify its portfolio, and aspires to contribute to the development of Omani capability in development of power projects in Oman,” the sovereign wealth fund said in a statement. “Through its New Energy’s division, Shell is growing its business portfolio and capabilities to deliver low carbon energy solutions including the pursuit of renewable energy projects.”
EnerTech, a wholly owned entity of the Kuwait Investment Authority, aims to promote renewable energy and energy efficiency technologies adoption throughout the region. “Together, the parties shall identify structures in which the parties would jointly develop, invest in, construct, operate and maintain renewable projects and promote investment in cutting edge, cost competitive and commercially viable projects,” the wealth fund added.
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 Total and Oman Oil Company (OOC) as partners. It will also operate a GTL project with OOC as a partner.
The proposed investments will help Oman meet its energy needs and growth aspirations and are aligned with Shell’s strategy of building a resilient and relevant portfolio that is positioned for long term success. 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 industrialisation 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.”
Source Link: www.omanobserver.om