The upstream agreement covers gas acreage in the northern part of Block 6 located to the west of the existing Saih Rawl gas field that is operated by PDO. The project covers investments in gas exploration and production, in partnership with Total and OOC.
Signing the agreement on behalf of their respective organisations were: Ben van Beurden, CEO — Shell; Stephane Michel, Senior Vice- President Exploration-Production Middle East & North Africa of Total; and Isam al Zadjali, CEO — Oman Oil Company.
The pact is the first step towards the implementation of the Memorandum of Understanding signed by the Ministry with the four upstream players in May 2018 related to the development of an Integrated Gas project.
This integrated project includes an upstream development, in partnership with Shell and OOC, to produce the gas resources of the Greater Barik area and a downstream development by which Total and OOC will supply build and operate a 1 million tonnes per annum (Mtpa) LNG plant and develop a LNG bunkering hub in the port of Sohar.
Chris Breeze, Shell’s Country Chairman in Oman, said: “Today’s agreement is a significant step forward. We hope that the development of gas resources destined for the integrated projects will play an important role in generating in-country value and diversifying Oman’s economy. This agreement marks a new chapter in Shell’s close partnership with the government of Oman.”
“Total is pleased by this new step towards the development of an LNG bunkering hub in Sohar and is grateful to the Government of Oman for his continued support. We are confident that the project will help diversify the gas sector in Oman and support the economic development of the port of Sohar and its region,” commented Stephane Michel, Senior Vice- President Exploration-Production Middle East & North Africa of Total. “As a leading integrated gas player, Total is committed to bringing the best of its expertise to develop and operate this one of a kind integrated gas project.”
The parties will continue to work diligently to finalise the definitive agreements which will guarantee the success of those integrated developments.
Source Link: www.omanobserver.om