Shell, OQ and TotalEnergies have signed a new contract with Oman on Block 11.
Oman’s Ministry of Energy and Minerals signed the exploration and production-sharing agreement (EPSA), establishing Shell Integrated Gas Oman as the operator. The Shell unit will hold a 67.5% stake.
OQ has 10% and Total 22.5% in the block.
The companies have committed to shooting 1,400 square km of seismic later this year, with exploration drilling starting in 2023.
Minister of Energy and Minerals Salim bin Nasser Al Aufi said the ministry was focused on “enhancing the natural gas reserves of the Sultanate of Oman through exploration and appraisal activities undertaken by several companies in the country”.
© Supplied by TotalEnergiesThe deal “strengthens the strategic relations with partners in the sector such as Shell, TotalEnergies, OQ and others to ensure Oman’s energy security and attract more foreign investment, adding the highest value to the local supply chain”.
Shell country chair in Oman Walid Hadi said the block was in Oman’s west, within and nearby the Um Asamim Sabkha.
“Shell’s entry into this block signifies a further commitment to Oman, while enhancing and diversifying its gas supply. For Shell, this partnership will strengthen our integrated gas business and generate value for Oman and our shareholders,” he said.
Total did not immediately comment on the announcement.
However, in December 2021, the company announced a deal with Oman on a wide-ranging gas plan, around Block 11. Total agreed to form Marsa LNG, with the aim of providing fuel for bunkering.
At the same time, Oman appointed Shell to operate Block 10.
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