Shell and Oman’s Ministry of Oil and Gas have signed an interim upstream agreement for the development of gas resources for integrated projects, aiming to help meet Oman’s growing need for energy
The agreement has been signed by Shell CEO Ben van Beurden and Dr Mohammed bin Hamad Al Rumhy, minister of oil and gas (MOG). The other signatories were Petroleum Development Oman (PDO), Oman Oil Company (OOC) and Total.
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.
The aim is to integrate the Shell and OOC share of the upstream project with the development of a gas-to-liquids plant (GTL) currently under discussion, to be developed and operated by Shell in partnership with OOC.
Chris Breeze, country chairman of Shell in Oman, said, “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.”
MOG, Shell and partners (OOC and Total) continue to work closely to finalise definitive agreements which will underpin the long-term success of the energy projects which were first outlined in the MoU signed in May 2018.
